Correlation Between Sany Heavy and Dow Jones
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By analyzing existing cross correlation between Sany Heavy Energy and Dow Jones Industrial, you can compare the effects of market volatilities on Sany Heavy and Dow Jones and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sany Heavy with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sany Heavy and Dow Jones.
Diversification Opportunities for Sany Heavy and Dow Jones
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sany and Dow is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sany Heavy Energy and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Sany Heavy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sany Heavy Energy are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Sany Heavy i.e., Sany Heavy and Dow Jones go up and down completely randomly.
Pair Corralation between Sany Heavy and Dow Jones
Assuming the 90 days trading horizon Sany Heavy Energy is expected to generate 2.79 times more return on investment than Dow Jones. However, Sany Heavy is 2.79 times more volatile than Dow Jones Industrial. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of risk. If you would invest 2,934 in Sany Heavy Energy on September 1, 2024 and sell it today you would earn a total of 316.00 from holding Sany Heavy Energy or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Sany Heavy Energy vs. Dow Jones Industrial
Performance |
| Timeline |
Sany Heavy and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sany Heavy Energy
Pair trading matchups for Sany Heavy
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sany Heavy and Dow Jones
The main advantage of trading using opposite Sany Heavy and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sany Heavy position performs unexpectedly, Dow Jones can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dow Jones will offset losses from the drop in Dow Jones' long position.| Sany Heavy vs. Sanbo Hospital Management | Sany Heavy vs. Impulse Qingdao Health | Sany Heavy vs. Offcn Education Technology | Sany Heavy vs. By health |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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