Correlation Between Dow Jones and Jinlong Machinery
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By analyzing existing cross correlation between Dow Jones Industrial and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Dow Jones and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Jinlong Machinery.
Diversification Opportunities for Dow Jones and Jinlong Machinery
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dow and Jinlong is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Dow Jones i.e., Dow Jones and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Dow Jones and Jinlong Machinery
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.24 times more return on investment than Jinlong Machinery. However, Dow Jones Industrial is 4.19 times less risky than Jinlong Machinery. It trades about -0.01 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.11 per unit of risk. If you would invest 4,473,657 in Dow Jones Industrial on October 26, 2024 and sell it today you would lose (17,150) from holding Dow Jones Industrial or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.02% |
| Values | Daily Returns |
Dow Jones Industrial vs. Jinlong Machinery Electronic
Performance |
| Timeline |
Dow Jones and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Jinlong Machinery Electronic
Pair trading matchups for Jinlong Machinery
Pair Trading with Dow Jones and Jinlong Machinery
The main advantage of trading using opposite Dow Jones and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Dow Jones vs. Asure Software | Dow Jones vs. Amkor Technology | Dow Jones vs. Radcom | Dow Jones vs. Senmiao Technology |
| Jinlong Machinery vs. China State Construction | Jinlong Machinery vs. Poly Real Estate | Jinlong Machinery vs. China Vanke Co | Jinlong Machinery vs. China Merchants Shekou |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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