Correlation Between Dow Jones and Shenzhen Coship
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By analyzing existing cross correlation between Dow Jones Industrial and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Dow Jones and Shenzhen Coship 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 Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Shenzhen Coship.
Diversification Opportunities for Dow Jones and Shenzhen Coship
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Shenzhen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Dow Jones i.e., Dow Jones and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Dow Jones and Shenzhen Coship
Assuming the 90 days trading horizon Dow Jones is expected to generate 5.77 times less return on investment than Shenzhen Coship. But when comparing it to its historical volatility, Dow Jones Industrial is 4.8 times less risky than Shenzhen Coship. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Shenzhen Coship Electronics on October 11, 2024 and sell it today you would earn a total of 438.00 from holding Shenzhen Coship Electronics or generate 214.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
Dow Jones Industrial vs. Shenzhen Coship Electronics
Performance |
| Timeline |
Dow Jones and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Shenzhen Coship Electronics
Pair trading matchups for Shenzhen Coship
Pair Trading with Dow Jones and Shenzhen Coship
The main advantage of trading using opposite Dow Jones and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship's long position.| Dow Jones vs. Thai Beverage PCL | Dow Jones vs. ServiceNow | Dow Jones vs. Loud Beverage Group | Dow Jones vs. Suntory Beverage Food |
| Shenzhen Coship vs. Porton Fine Chemicals | Shenzhen Coship vs. Ingenic Semiconductor | Shenzhen Coship vs. Peoples Insurance of | Shenzhen Coship vs. Ping An Insurance |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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