Correlation Between Dow Jones and Anhui Gujing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Anhui Gujing Distillery, you can compare the effects of market volatilities on Dow Jones and Anhui Gujing 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 Dow Jones with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Anhui Gujing.
Diversification Opportunities for Dow Jones and Anhui Gujing
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Anhui is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Dow Jones i.e., Dow Jones and Anhui Gujing go up and down completely randomly.
Pair Corralation between Dow Jones and Anhui Gujing
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.09 times less return on investment than Anhui Gujing. But when comparing it to its historical volatility, Dow Jones Industrial is 4.89 times less risky than Anhui Gujing. It trades about 0.17 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 18,456 in Anhui Gujing Distillery on August 28, 2024 and sell it today you would earn a total of 524.00 from holding Anhui Gujing Distillery or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.37% |
| Values | Daily Returns |
Dow Jones Industrial vs. Anhui Gujing Distillery
Performance |
| Timeline |
Dow Jones and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Anhui Gujing Distillery
Pair trading matchups for Anhui Gujing
Pair Trading with Dow Jones and Anhui Gujing
The main advantage of trading using opposite Dow Jones and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| Anhui Gujing vs. BYD Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Industrial and Commercial |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |