Correlation Between Dow Jones and JiShi Media
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By analyzing existing cross correlation between Dow Jones Industrial and JiShi Media Co, you can compare the effects of market volatilities on Dow Jones and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and JiShi Media.
Diversification Opportunities for Dow Jones and JiShi Media
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and JiShi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Dow Jones i.e., Dow Jones and JiShi Media go up and down completely randomly.
Pair Corralation between Dow Jones and JiShi Media
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.23 times more return on investment than JiShi Media. However, Dow Jones Industrial is 4.31 times less risky than JiShi Media. It trades about 0.21 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.04 per unit of risk. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. JiShi Media Co
Performance |
| Timeline |
Dow Jones and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
JiShi Media Co
Pair trading matchups for JiShi Media
Pair Trading with Dow Jones and JiShi Media
The main advantage of trading using opposite Dow Jones and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
| JiShi Media vs. Chengdu Kanghua Biological | JiShi Media vs. Beijing Wantai Biological | JiShi Media vs. Suzhou Novoprotein Scientific | JiShi Media vs. Aluminum Corp of |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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