Correlation Between Dow Jones and Guangdong TianYiMa
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By analyzing existing cross correlation between Dow Jones Industrial and Guangdong TianYiMa Information, you can compare the effects of market volatilities on Dow Jones and Guangdong TianYiMa 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 Guangdong TianYiMa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Guangdong TianYiMa.
Diversification Opportunities for Dow Jones and Guangdong TianYiMa
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Guangdong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Guangdong TianYiMa Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong TianYiMa 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 Guangdong TianYiMa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong TianYiMa has no effect on the direction of Dow Jones i.e., Dow Jones and Guangdong TianYiMa go up and down completely randomly.
Pair Corralation between Dow Jones and Guangdong TianYiMa
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.24 times more return on investment than Guangdong TianYiMa. However, Dow Jones Industrial is 4.2 times less risky than Guangdong TianYiMa. It trades about 0.36 of its potential returns per unit of risk. Guangdong TianYiMa Information is currently generating about -0.07 per unit of risk. If you would invest 4,257,373 in Dow Jones Industrial on October 30, 2024 and sell it today you would earn a total of 213,985 from holding Dow Jones Industrial or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Guangdong TianYiMa Information
Performance |
| Timeline |
Dow Jones and Guangdong TianYiMa Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Guangdong TianYiMa Information
Pair trading matchups for Guangdong TianYiMa
Pair Trading with Dow Jones and Guangdong TianYiMa
The main advantage of trading using opposite Dow Jones and Guangdong TianYiMa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Guangdong TianYiMa 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 Guangdong TianYiMa will offset losses from the drop in Guangdong TianYiMa's long position.| Dow Jones vs. Snap On | Dow Jones vs. Hillman Solutions Corp | Dow Jones vs. RBC Bearings Incorporated | Dow Jones vs. Rocky Brands |
| Guangdong TianYiMa vs. Namchow Food Group | Guangdong TianYiMa vs. Youyou Foods Co | Guangdong TianYiMa vs. HaiXin Foods Co | Guangdong TianYiMa vs. CITIC Metal Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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