Correlation Between Dow Jones and Changzhou Xingyu
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By analyzing existing cross correlation between Dow Jones Industrial and Changzhou Xingyu Automotive, you can compare the effects of market volatilities on Dow Jones and Changzhou Xingyu 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 Changzhou Xingyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Changzhou Xingyu.
Diversification Opportunities for Dow Jones and Changzhou Xingyu
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dow and Changzhou is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Changzhou Xingyu Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Xingyu Aut 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 Changzhou Xingyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Xingyu Aut has no effect on the direction of Dow Jones i.e., Dow Jones and Changzhou Xingyu go up and down completely randomly.
Pair Corralation between Dow Jones and Changzhou Xingyu
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.24 times more return on investment than Changzhou Xingyu. However, Dow Jones Industrial is 4.17 times less risky than Changzhou Xingyu. It trades about 0.05 of its potential returns per unit of risk. Changzhou Xingyu Automotive is currently generating about -0.09 per unit of risk. If you would invest 4,391,098 in Dow Jones Industrial on September 13, 2024 and sell it today you would earn a total of 23,758 from holding Dow Jones Industrial or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Dow Jones Industrial vs. Changzhou Xingyu Automotive
Performance |
| Timeline |
Dow Jones and Changzhou Xingyu Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Changzhou Xingyu Automotive
Pair trading matchups for Changzhou Xingyu
Pair Trading with Dow Jones and Changzhou Xingyu
The main advantage of trading using opposite Dow Jones and Changzhou Xingyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Changzhou Xingyu 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 Changzhou Xingyu will offset losses from the drop in Changzhou Xingyu's long position.| Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
| Changzhou Xingyu vs. StarPower Semiconductor | Changzhou Xingyu vs. Ye Chiu Metal | Changzhou Xingyu vs. Union Semiconductor Co | Changzhou Xingyu vs. Juneyao Airlines |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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