Correlation Between Dow Jones and Guangzhou Haozhi
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By analyzing existing cross correlation between Dow Jones Industrial and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Dow Jones and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Guangzhou Haozhi.
Diversification Opportunities for Dow Jones and Guangzhou Haozhi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Guangzhou is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Dow Jones i.e., Dow Jones and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Dow Jones and Guangzhou Haozhi
Assuming the 90 days trading horizon Dow Jones is expected to generate 3.15 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Dow Jones Industrial is 5.75 times less risky than Guangzhou Haozhi. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,264 in Guangzhou Haozhi Industrial on August 29, 2024 and sell it today you would earn a total of 441.00 from holding Guangzhou Haozhi Industrial or generate 34.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.78% |
| Values | Daily Returns |
Dow Jones Industrial vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
Dow Jones and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Guangzhou Haozhi Industrial
Pair trading matchups for Guangzhou Haozhi
Pair Trading with Dow Jones and Guangzhou Haozhi
The main advantage of trading using opposite Dow Jones and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| Guangzhou Haozhi vs. Eastern Air Logistics | Guangzhou Haozhi vs. Sanxiang Advanced Materials | Guangzhou Haozhi vs. Xinke Material | Guangzhou Haozhi vs. Rising Nonferrous Metals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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