Correlation Between Dow Jones and Xinjiang Sailing
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By analyzing existing cross correlation between Dow Jones Industrial and Xinjiang Sailing Information, you can compare the effects of market volatilities on Dow Jones and Xinjiang Sailing 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 Xinjiang Sailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Xinjiang Sailing.
Diversification Opportunities for Dow Jones and Xinjiang Sailing
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Xinjiang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Xinjiang Sailing Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Sailing Inf 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 Xinjiang Sailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Sailing Inf has no effect on the direction of Dow Jones i.e., Dow Jones and Xinjiang Sailing go up and down completely randomly.
Pair Corralation between Dow Jones and Xinjiang Sailing
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.18 times more return on investment than Xinjiang Sailing. However, Dow Jones Industrial is 5.52 times less risky than Xinjiang Sailing. It trades about 0.17 of its potential returns per unit of risk. Xinjiang Sailing Information is currently generating about -0.21 per unit of risk. If you would invest 4,290,695 in Dow Jones Industrial on October 24, 2024 and sell it today you would earn a total of 111,886 from holding Dow Jones Industrial or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Dow Jones Industrial vs. Xinjiang Sailing Information
Performance |
| Timeline |
Dow Jones and Xinjiang Sailing Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Xinjiang Sailing Information
Pair trading matchups for Xinjiang Sailing
Pair Trading with Dow Jones and Xinjiang Sailing
The main advantage of trading using opposite Dow Jones and Xinjiang Sailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Xinjiang Sailing 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 Xinjiang Sailing will offset losses from the drop in Xinjiang Sailing's long position.| Dow Jones vs. Transocean | Dow Jones vs. Noble plc | Dow Jones vs. Evolution Gaming Group | Dow Jones vs. Addus HomeCare |
| Xinjiang Sailing vs. Queclink Wireless Solutions | Xinjiang Sailing vs. Ziel Home Furnishing | Xinjiang Sailing vs. Vohringer Home Technology | Xinjiang Sailing vs. Oppein Home Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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