Correlation Between COSCO SHIPPING and Dow Jones
Can any of the company-specific risk be diversified away by investing in both COSCO SHIPPING 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 COSCO SHIPPING and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSCO SHIPPING Development and Dow Jones Industrial, you can compare the effects of market volatilities on COSCO SHIPPING 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 COSCO SHIPPING with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSCO SHIPPING and Dow Jones.
Diversification Opportunities for COSCO SHIPPING and Dow Jones
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COSCO and Dow is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING Development 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 COSCO SHIPPING 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 COSCO SHIPPING Development 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 COSCO SHIPPING i.e., COSCO SHIPPING and Dow Jones go up and down completely randomly.
Pair Corralation between COSCO SHIPPING and Dow Jones
Assuming the 90 days horizon COSCO SHIPPING Development is expected to under-perform the Dow Jones. In addition to that, COSCO SHIPPING is 3.02 times more volatile than Dow Jones Industrial. It trades about -0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of volatility. If you would invest 4,053,993 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 375,658 from holding Dow Jones Industrial or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 58.82% |
| Values | Daily Returns |
COSCO SHIPPING Development vs. Dow Jones Industrial
Performance |
| Timeline |
COSCO SHIPPING and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
COSCO SHIPPING Development
Pair trading matchups for COSCO SHIPPING
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with COSCO SHIPPING and Dow Jones
The main advantage of trading using opposite COSCO SHIPPING and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSCO SHIPPING 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.| COSCO SHIPPING vs. SITC International Holdings | COSCO SHIPPING vs. Orient Overseas Limited | COSCO SHIPPING vs. COSCO SHIPPING Holdings | COSCO SHIPPING vs. Pacific Basin Shipping |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |