Correlation Between Dow Jones and Jangho Group
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By analyzing existing cross correlation between Dow Jones Industrial and Jangho Group Co, you can compare the effects of market volatilities on Dow Jones and Jangho Group 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 Jangho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Jangho Group.
Diversification Opportunities for Dow Jones and Jangho Group
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Jangho is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Jangho Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jangho 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 Jangho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jangho Group has no effect on the direction of Dow Jones i.e., Dow Jones and Jangho Group go up and down completely randomly.
Pair Corralation between Dow Jones and Jangho Group
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.36 times more return on investment than Jangho Group. However, Dow Jones Industrial is 2.76 times less risky than Jangho Group. It trades about 0.14 of its potential returns per unit of risk. Jangho Group Co is currently generating about 0.0 per unit of risk. If you would invest 3,885,227 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 605,838 from holding Dow Jones Industrial or generate 15.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.95% |
| Values | Daily Returns |
Dow Jones Industrial vs. Jangho Group Co
Performance |
| Timeline |
Dow Jones and Jangho Group Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Jangho Group Co
Pair trading matchups for Jangho Group
Pair Trading with Dow Jones and Jangho Group
The main advantage of trading using opposite Dow Jones and Jangho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Jangho Group 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 Jangho Group will offset losses from the drop in Jangho Group's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| Jangho Group vs. BTG Hotels Group | Jangho Group vs. Tsingtao Brewery Co | Jangho Group vs. Jonjee Hi tech Industrial | Jangho Group 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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