Correlation Between Dow Jones and Anshan Senyuan
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By analyzing existing cross correlation between Dow Jones Industrial and Anshan Senyuan Road, you can compare the effects of market volatilities on Dow Jones and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Anshan Senyuan.
Diversification Opportunities for Dow Jones and Anshan Senyuan
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dow and Anshan is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Dow Jones i.e., Dow Jones and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Dow Jones and Anshan Senyuan
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.23 times more return on investment than Anshan Senyuan. However, Dow Jones Industrial is 4.34 times less risky than Anshan Senyuan. It trades about -0.21 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.35 per unit of risk. If you would invest 4,414,856 in Dow Jones Industrial on October 12, 2024 and sell it today you would lose (151,336) from holding Dow Jones Industrial or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Anshan Senyuan Road
Performance |
| Timeline |
Dow Jones and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Anshan Senyuan Road
Pair trading matchups for Anshan Senyuan
Pair Trading with Dow Jones and Anshan Senyuan
The main advantage of trading using opposite Dow Jones and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| Dow Jones vs. Toro | Dow Jones vs. Foot Locker | Dow Jones vs. Abercrombie Fitch | Dow Jones vs. 51Talk Online Education |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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