Correlation Between Dow Jones and Changjiang Publishing
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By analyzing existing cross correlation between Dow Jones Industrial and Changjiang Publishing Media, you can compare the effects of market volatilities on Dow Jones and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Changjiang Publishing.
Diversification Opportunities for Dow Jones and Changjiang Publishing
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dow and Changjiang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Dow Jones i.e., Dow Jones and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Dow Jones and Changjiang Publishing
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.55 times more return on investment than Changjiang Publishing. However, Dow Jones Industrial is 1.82 times less risky than Changjiang Publishing. It trades about 0.27 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.1 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Changjiang Publishing Media
Performance |
| Timeline |
Dow Jones and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Changjiang Publishing Media
Pair trading matchups for Changjiang Publishing
Pair Trading with Dow Jones and Changjiang Publishing
The main advantage of trading using opposite Dow Jones and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| Changjiang Publishing vs. China State Construction | Changjiang Publishing vs. Huafa Industrial Co | Changjiang Publishing vs. China International Capital | Changjiang Publishing vs. Kweichow Moutai 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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