Correlation Between Dow Jones and Hengli Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Hengli Industrial Development, you can compare the effects of market volatilities on Dow Jones and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Hengli Industrial.
Diversification Opportunities for Dow Jones and Hengli Industrial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Hengli is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Dow Jones i.e., Dow Jones and Hengli Industrial go up and down completely randomly.
Pair Corralation between Dow Jones and Hengli Industrial
Assuming the 90 days trading horizon Dow Jones is expected to generate 3.36 times less return on investment than Hengli Industrial. But when comparing it to its historical volatility, Dow Jones Industrial is 4.42 times less risky than Hengli Industrial. It trades about 0.37 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Hengli Industrial Development on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Hengli Industrial Development or generate 27.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Hengli Industrial Development
Performance |
| Timeline |
Dow Jones and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Hengli Industrial Development
Pair trading matchups for Hengli Industrial
Pair Trading with Dow Jones and Hengli Industrial
The main advantage of trading using opposite Dow Jones and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Hengli Industrial vs. Shenzhen Centralcon Investment | Hengli Industrial vs. Guangzhou Zhujiang Brewery | Hengli Industrial vs. Beijing Mainstreets Investment | Hengli Industrial vs. Tongyu Communication |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Correlations Find global opportunities by holding instruments from different markets |