Correlation Between Dow Jones and Beijing Lanxum
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By analyzing existing cross correlation between Dow Jones Industrial and Beijing Lanxum Tech, you can compare the effects of market volatilities on Dow Jones and Beijing Lanxum 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 Beijing Lanxum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Beijing Lanxum.
Diversification Opportunities for Dow Jones and Beijing Lanxum
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Beijing Lanxum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lanxum Tech 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 Beijing Lanxum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lanxum Tech has no effect on the direction of Dow Jones i.e., Dow Jones and Beijing Lanxum go up and down completely randomly.
Pair Corralation between Dow Jones and Beijing Lanxum
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.11 times more return on investment than Beijing Lanxum. However, Dow Jones Industrial is 9.32 times less risky than Beijing Lanxum. It trades about 0.36 of its potential returns per unit of risk. Beijing Lanxum Tech is currently generating about 0.01 per unit of risk. If you would invest 4,179,460 in Dow Jones Industrial on September 4, 2024 and sell it today you would earn a total of 298,740 from holding Dow Jones Industrial or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Beijing Lanxum Tech
Performance |
| Timeline |
Dow Jones and Beijing Lanxum Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Beijing Lanxum Tech
Pair trading matchups for Beijing Lanxum
Pair Trading with Dow Jones and Beijing Lanxum
The main advantage of trading using opposite Dow Jones and Beijing Lanxum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Beijing Lanxum 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 Beijing Lanxum will offset losses from the drop in Beijing Lanxum's long position.| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
| Beijing Lanxum vs. Ciwen Media Co | Beijing Lanxum vs. Lander Sports Development | Beijing Lanxum vs. JiShi Media Co | Beijing Lanxum vs. Dalian Zeus Entertainment |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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