Correlation Between Dow Jones and Shengtak New
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By analyzing existing cross correlation between Dow Jones Industrial and Shengtak New Material, you can compare the effects of market volatilities on Dow Jones and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Shengtak New.
Diversification Opportunities for Dow Jones and Shengtak New
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dow and Shengtak is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Dow Jones i.e., Dow Jones and Shengtak New go up and down completely randomly.
Pair Corralation between Dow Jones and Shengtak New
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the Shengtak New. But the index apears to be less risky and, when comparing its historical volatility, Dow Jones Industrial is 2.15 times less risky than Shengtak New. The index trades about -0.28 of its potential returns per unit of risk. The Shengtak New Material is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 3,207 in Shengtak New Material on September 29, 2024 and sell it today you would lose (50.00) from holding Shengtak New Material or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Shengtak New Material
Performance |
| Timeline |
Dow Jones and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Shengtak New Material
Pair trading matchups for Shengtak New
Pair Trading with Dow Jones and Shengtak New
The main advantage of trading using opposite Dow Jones and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Dow Jones vs. Eldorado Gold Corp | Dow Jones vs. Flexible Solutions International | Dow Jones vs. Olympic Steel | Dow Jones vs. Valhi Inc |
| Shengtak New vs. Hubei Geoway Investment | Shengtak New vs. Jiujiang Shanshui Technology | Shengtak New vs. Changchun UP Optotech | Shengtak New vs. Tieling Newcity Investment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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