Correlation Between Dow Jones and China Marine
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By analyzing existing cross correlation between Dow Jones Industrial and China Marine Information, you can compare the effects of market volatilities on Dow Jones and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and China Marine.
Diversification Opportunities for Dow Jones and China Marine
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Dow Jones i.e., Dow Jones and China Marine go up and down completely randomly.
Pair Corralation between Dow Jones and China Marine
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.36 times more return on investment than China Marine. However, Dow Jones Industrial is 2.79 times less risky than China Marine. It trades about 0.37 of its potential returns per unit of risk. China Marine Information is currently generating about -0.32 per unit of risk. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. China Marine Information
Performance |
| Timeline |
Dow Jones and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
China Marine Information
Pair trading matchups for China Marine
Pair Trading with Dow Jones and China Marine
The main advantage of trading using opposite Dow Jones and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| China Marine vs. Ming Yang Smart | China Marine vs. 159681 | China Marine vs. 159005 | China Marine vs. Loctek Ergonomic Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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