Correlation Between Dow Jones and Jinzhou Port
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By analyzing existing cross correlation between Dow Jones Industrial and Jinzhou Port Co, you can compare the effects of market volatilities on Dow Jones and Jinzhou Port 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 Jinzhou Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Jinzhou Port.
Diversification Opportunities for Dow Jones and Jinzhou Port
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Jinzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Jinzhou Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzhou Port 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 Jinzhou Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzhou Port has no effect on the direction of Dow Jones i.e., Dow Jones and Jinzhou Port go up and down completely randomly.
Pair Corralation between Dow Jones and Jinzhou Port
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.27 times more return on investment than Jinzhou Port. However, Dow Jones Industrial is 3.74 times less risky than Jinzhou Port. It trades about 0.08 of its potential returns per unit of risk. Jinzhou Port Co is currently generating about -0.05 per unit of risk. If you would invest 3,418,997 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 1,059,203 from holding Dow Jones Industrial or generate 30.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Jinzhou Port Co
Performance |
| Timeline |
Dow Jones and Jinzhou Port Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Jinzhou Port Co
Pair trading matchups for Jinzhou Port
Pair Trading with Dow Jones and Jinzhou Port
The main advantage of trading using opposite Dow Jones and Jinzhou Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Jinzhou Port 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 Jinzhou Port will offset losses from the drop in Jinzhou Port's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| Jinzhou Port vs. Zhengzhou Qianweiyangchu Food | Jinzhou Port vs. Dazhong Transportation Group | Jinzhou Port vs. New Hope Dairy | Jinzhou Port vs. HaiXin Foods Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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