Correlation Between Dow Jones and Shenyang Huitian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Dow Jones and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Shenyang Huitian.
Diversification Opportunities for Dow Jones and Shenyang Huitian
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Shenyang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Dow Jones i.e., Dow Jones and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Dow Jones and Shenyang Huitian
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.26 times more return on investment than Shenyang Huitian. However, Dow Jones Industrial is 3.79 times less risky than Shenyang Huitian. It trades about 0.29 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.03 per unit of risk. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Shenyang Huitian Thermal
Performance |
| Timeline |
Dow Jones and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Shenyang Huitian Thermal
Pair trading matchups for Shenyang Huitian
Pair Trading with Dow Jones and Shenyang Huitian
The main advantage of trading using opposite Dow Jones and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Kweichow Moutai Co | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Mobile Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |