Correlation Between Dow Jones and Hangzhou Xili
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By analyzing existing cross correlation between Dow Jones Industrial and Hangzhou Xili Intelligent, you can compare the effects of market volatilities on Dow Jones and Hangzhou Xili 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 Hangzhou Xili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Hangzhou Xili.
Diversification Opportunities for Dow Jones and Hangzhou Xili
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Hangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Hangzhou Xili Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Xili Intelligent 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 Hangzhou Xili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Xili Intelligent has no effect on the direction of Dow Jones i.e., Dow Jones and Hangzhou Xili go up and down completely randomly.
Pair Corralation between Dow Jones and Hangzhou Xili
Assuming the 90 days trading horizon Dow Jones is expected to generate 10.94 times less return on investment than Hangzhou Xili. But when comparing it to its historical volatility, Dow Jones Industrial is 3.3 times less risky than Hangzhou Xili. It trades about 0.08 of its potential returns per unit of risk. Hangzhou Xili Intelligent is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 892.00 in Hangzhou Xili Intelligent on September 13, 2024 and sell it today you would earn a total of 293.00 from holding Hangzhou Xili Intelligent or generate 32.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Hangzhou Xili Intelligent
Performance |
| Timeline |
Dow Jones and Hangzhou Xili Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Hangzhou Xili Intelligent
Pair trading matchups for Hangzhou Xili
Pair Trading with Dow Jones and Hangzhou Xili
The main advantage of trading using opposite Dow Jones and Hangzhou Xili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Hangzhou Xili 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 Hangzhou Xili will offset losses from the drop in Hangzhou Xili'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 |
| Hangzhou Xili vs. Industrial and Commercial | Hangzhou Xili vs. Agricultural Bank of | Hangzhou Xili vs. China Construction Bank | Hangzhou Xili vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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