Correlation Between Dow Jones and Zhuzhou Kibing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Dow Jones and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Zhuzhou Kibing.
Diversification Opportunities for Dow Jones and Zhuzhou Kibing
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Zhuzhou is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Dow Jones i.e., Dow Jones and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Dow Jones and Zhuzhou Kibing
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.45 times more return on investment than Zhuzhou Kibing. However, Dow Jones Industrial is 2.22 times less risky than Zhuzhou Kibing. It trades about 0.25 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.33 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 233,449 from holding Dow Jones Industrial or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Zhuzhou Kibing Group
Performance |
| Timeline |
Dow Jones and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Zhuzhou Kibing Group
Pair trading matchups for Zhuzhou Kibing
Pair Trading with Dow Jones and Zhuzhou Kibing
The main advantage of trading using opposite Dow Jones and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| Zhuzhou Kibing vs. Guangzhou Haige Communications | Zhuzhou Kibing vs. Eastern Communications Co | Zhuzhou Kibing vs. Sunwave Communications Co | Zhuzhou Kibing vs. Shenzhen Kexin Communication |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |