Correlation Between Dow Jones and Jiangsu Hoperun
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By analyzing existing cross correlation between Dow Jones Industrial and Jiangsu Hoperun Software, you can compare the effects of market volatilities on Dow Jones and Jiangsu Hoperun 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 Jiangsu Hoperun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Jiangsu Hoperun.
Diversification Opportunities for Dow Jones and Jiangsu Hoperun
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dow and Jiangsu is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Jiangsu Hoperun Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Hoperun Software 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 Jiangsu Hoperun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Hoperun Software has no effect on the direction of Dow Jones i.e., Dow Jones and Jiangsu Hoperun go up and down completely randomly.
Pair Corralation between Dow Jones and Jiangsu Hoperun
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.18 times more return on investment than Jiangsu Hoperun. However, Dow Jones Industrial is 5.48 times less risky than Jiangsu Hoperun. It trades about 0.32 of its potential returns per unit of risk. Jiangsu Hoperun Software is currently generating about -0.05 per unit of risk. If you would invest 4,257,373 in Dow Jones Industrial on October 29, 2024 and sell it today you would earn a total of 185,052 from holding Dow Jones Industrial or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Jiangsu Hoperun Software
Performance |
| Timeline |
Dow Jones and Jiangsu Hoperun Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Jiangsu Hoperun Software
Pair trading matchups for Jiangsu Hoperun
Pair Trading with Dow Jones and Jiangsu Hoperun
The main advantage of trading using opposite Dow Jones and Jiangsu Hoperun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Jiangsu Hoperun 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 Jiangsu Hoperun will offset losses from the drop in Jiangsu Hoperun's long position.| Dow Jones vs. Lion One Metals | Dow Jones vs. PennantPark Floating Rate | Dow Jones vs. TFI International | Dow Jones vs. United Guardian |
| Jiangsu Hoperun vs. Shandong Polymer Biochemicals | Jiangsu Hoperun vs. Vats Liquor Chain | Jiangsu Hoperun vs. Ningxia Younglight Chemicals | Jiangsu Hoperun vs. Shenzhen Noposion Agrochemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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