Correlation Between Dow Jones and Shenzhen Hifuture
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By analyzing existing cross correlation between Dow Jones Industrial and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Dow Jones and Shenzhen Hifuture 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 Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Shenzhen Hifuture.
Diversification Opportunities for Dow Jones and Shenzhen Hifuture
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and Shenzhen is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Dow Jones i.e., Dow Jones and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Dow Jones and Shenzhen Hifuture
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.32 times less return on investment than Shenzhen Hifuture. But when comparing it to its historical volatility, Dow Jones Industrial is 4.26 times less risky than Shenzhen Hifuture. It trades about 0.18 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 256.00 in Shenzhen Hifuture Electric on August 28, 2024 and sell it today you would earn a total of 19.00 from holding Shenzhen Hifuture Electric or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Dow Jones Industrial vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
Dow Jones and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Shenzhen Hifuture Electric
Pair trading matchups for Shenzhen Hifuture
Pair Trading with Dow Jones and Shenzhen Hifuture
The main advantage of trading using opposite Dow Jones and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Shenzhen Hifuture 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 Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
| Shenzhen Hifuture vs. Anhui Deli Household | Shenzhen Hifuture vs. Tianjin Hi Tech Development | Shenzhen Hifuture vs. Juneyao Airlines | Shenzhen Hifuture vs. Shanghai Metersbonwe FashionAccessories |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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