Correlation Between Dow Jones and Bonree Data
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By analyzing existing cross correlation between Dow Jones Industrial and Bonree Data Technology, you can compare the effects of market volatilities on Dow Jones and Bonree Data 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 Bonree Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Bonree Data.
Diversification Opportunities for Dow Jones and Bonree Data
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Bonree is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Bonree Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonree Data Technology 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 Bonree Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonree Data Technology has no effect on the direction of Dow Jones i.e., Dow Jones and Bonree Data go up and down completely randomly.
Pair Corralation between Dow Jones and Bonree Data
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.38 times less return on investment than Bonree Data. But when comparing it to its historical volatility, Dow Jones Industrial is 6.12 times less risky than Bonree Data. It trades about 0.22 of its potential returns per unit of risk. Bonree Data Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,368 in Bonree Data Technology on October 28, 2024 and sell it today you would earn a total of 132.00 from holding Bonree Data Technology or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Dow Jones Industrial vs. Bonree Data Technology
Performance |
| Timeline |
Dow Jones and Bonree Data Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Bonree Data Technology
Pair trading matchups for Bonree Data
Pair Trading with Dow Jones and Bonree Data
The main advantage of trading using opposite Dow Jones and Bonree Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Bonree Data 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 Bonree Data will offset losses from the drop in Bonree Data's long position.| Dow Jones vs. Lion One Metals | Dow Jones vs. PennantPark Floating Rate | Dow Jones vs. TFI International | Dow Jones vs. United Guardian |
| Bonree Data vs. China State Construction | Bonree Data vs. Poly Real Estate | Bonree Data vs. China Vanke Co | Bonree Data vs. China Merchants Shekou |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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