Correlation Between Dow Jones and Yonghui Superstores
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Yonghui Superstores Co, you can compare the effects of market volatilities on Dow Jones and Yonghui Superstores 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 Yonghui Superstores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Yonghui Superstores.
Diversification Opportunities for Dow Jones and Yonghui Superstores
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Yonghui is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Yonghui Superstores Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonghui Superstores 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 Yonghui Superstores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonghui Superstores has no effect on the direction of Dow Jones i.e., Dow Jones and Yonghui Superstores go up and down completely randomly.
Pair Corralation between Dow Jones and Yonghui Superstores
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.25 times less return on investment than Yonghui Superstores. But when comparing it to its historical volatility, Dow Jones Industrial is 3.99 times less risky than Yonghui Superstores. It trades about 0.08 of its potential returns per unit of risk. Yonghui Superstores Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Yonghui Superstores Co on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Yonghui Superstores Co or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.17% |
| Values | Daily Returns |
Dow Jones Industrial vs. Yonghui Superstores Co
Performance |
| Timeline |
Dow Jones and Yonghui Superstores Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Yonghui Superstores Co
Pair trading matchups for Yonghui Superstores
Pair Trading with Dow Jones and Yonghui Superstores
The main advantage of trading using opposite Dow Jones and Yonghui Superstores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Yonghui Superstores 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 Yonghui Superstores will offset losses from the drop in Yonghui Superstores' long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| Yonghui Superstores vs. PetroChina Co Ltd | Yonghui Superstores vs. China Mobile Limited | Yonghui Superstores vs. Ping An Insurance | Yonghui Superstores vs. China Petroleum 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |