Correlation Between Dow Jones and ShenZhen Yitoa
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By analyzing existing cross correlation between Dow Jones Industrial and ShenZhen Yitoa Intelligent, you can compare the effects of market volatilities on Dow Jones and ShenZhen Yitoa 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 Yitoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and ShenZhen Yitoa.
Diversification Opportunities for Dow Jones and ShenZhen Yitoa
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dow and ShenZhen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and ShenZhen Yitoa Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShenZhen Yitoa Intel 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 Yitoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShenZhen Yitoa Intel has no effect on the direction of Dow Jones i.e., Dow Jones and ShenZhen Yitoa go up and down completely randomly.
Pair Corralation between Dow Jones and ShenZhen Yitoa
Assuming the 90 days trading horizon Dow Jones is expected to generate 2.68 times less return on investment than ShenZhen Yitoa. But when comparing it to its historical volatility, Dow Jones Industrial is 4.04 times less risky than ShenZhen Yitoa. It trades about 0.27 of its potential returns per unit of risk. ShenZhen Yitoa Intelligent is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 754.00 in ShenZhen Yitoa Intelligent on August 29, 2024 and sell it today you would earn a total of 112.00 from holding ShenZhen Yitoa Intelligent or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. ShenZhen Yitoa Intelligent
Performance |
| Timeline |
Dow Jones and ShenZhen Yitoa Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
ShenZhen Yitoa Intelligent
Pair trading matchups for ShenZhen Yitoa
Pair Trading with Dow Jones and ShenZhen Yitoa
The main advantage of trading using opposite Dow Jones and ShenZhen Yitoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, ShenZhen Yitoa 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 Yitoa will offset losses from the drop in ShenZhen Yitoa's long position.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| ShenZhen Yitoa vs. Nanjing Putian Telecommunications | ShenZhen Yitoa vs. Shenzhen Hifuture Electric | ShenZhen Yitoa vs. Shenyang Huitian Thermal | ShenZhen Yitoa vs. Jiangsu Xinning Modern |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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