Correlation Between Dow Jones and Shenzhen Silver
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By analyzing existing cross correlation between Dow Jones Industrial and Shenzhen Silver Basis, you can compare the effects of market volatilities on Dow Jones and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Shenzhen Silver.
Diversification Opportunities for Dow Jones and Shenzhen Silver
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Shenzhen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Dow Jones i.e., Dow Jones and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Dow Jones and Shenzhen Silver
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.18 times more return on investment than Shenzhen Silver. However, Dow Jones Industrial is 5.62 times less risky than Shenzhen Silver. It trades about 0.0 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.17 per unit of risk. If you would invest 4,391,098 in Dow Jones Industrial on September 13, 2024 and sell it today you would earn a total of 314.00 from holding Dow Jones Industrial or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dow Jones Industrial vs. Shenzhen Silver Basis
Performance |
| Timeline |
Dow Jones and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Shenzhen Silver Basis
Pair trading matchups for Shenzhen Silver
Pair Trading with Dow Jones and Shenzhen Silver
The main advantage of trading using opposite Dow Jones and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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