Correlation Between AiXin Life and Dow Jones
Can any of the company-specific risk be diversified away by investing in both AiXin Life and Dow Jones at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AiXin Life and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiXin Life International and Dow Jones Industrial, you can compare the effects of market volatilities on AiXin Life 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 AiXin Life with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiXin Life and Dow Jones.
Diversification Opportunities for AiXin Life and Dow Jones
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AiXin and Dow is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding AiXin Life International 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 AiXin Life 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 AiXin Life International 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 AiXin Life i.e., AiXin Life and Dow Jones go up and down completely randomly.
Pair Corralation between AiXin Life and Dow Jones
Given the investment horizon of 90 days AiXin Life International is expected to generate 174.41 times more return on investment than Dow Jones. However, AiXin Life is 174.41 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of risk. If you would invest 27.00 in AiXin Life International on September 12, 2024 and sell it today you would lose (25.30) from holding AiXin Life International or give up 93.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
AiXin Life International vs. Dow Jones Industrial
Performance |
| Timeline |
AiXin Life and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AiXin Life International
Pair trading matchups for AiXin Life
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with AiXin Life and Dow Jones
The main advantage of trading using opposite AiXin Life and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiXin Life 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.| AiXin Life vs. Bunzl plc | AiXin Life vs. Wanderport Corp | AiXin Life vs. Innovative Food Hldg | AiXin Life vs. Calavo Growers |
| Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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