Correlation Between Dow Jones and Ningbo Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Ningbo Construction Co, you can compare the effects of market volatilities on Dow Jones and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Ningbo Construction.
Diversification Opportunities for Dow Jones and Ningbo Construction
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Ningbo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Dow Jones i.e., Dow Jones and Ningbo Construction go up and down completely randomly.
Pair Corralation between Dow Jones and Ningbo Construction
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.24 times more return on investment than Ningbo Construction. However, Dow Jones Industrial is 4.1 times less risky than Ningbo Construction. It trades about -0.01 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about -0.09 per unit of risk. If you would invest 4,473,657 in Dow Jones Industrial on October 26, 2024 and sell it today you would lose (17,150) from holding Dow Jones Industrial or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
Dow Jones Industrial vs. Ningbo Construction Co
Performance |
| Timeline |
Dow Jones and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Ningbo Construction Co
Pair trading matchups for Ningbo Construction
Pair Trading with Dow Jones and Ningbo Construction
The main advantage of trading using opposite Dow Jones and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| Dow Jones vs. Asure Software | Dow Jones vs. Amkor Technology | Dow Jones vs. Radcom | Dow Jones vs. Senmiao Technology |
| Ningbo Construction vs. Nanning Chemical Industry | Ningbo Construction vs. State Grid InformationCommunication | Ningbo Construction vs. Dymatic Chemicals | Ningbo Construction vs. Guizhou Chanhen Chemical |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |