Correlation Between Dow Jones and Haoxi Health
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Haoxi Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dow Jones and Haoxi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Haoxi Health Technology, you can compare the effects of market volatilities on Dow Jones and Haoxi Health 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 Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Haoxi Health.
Diversification Opportunities for Dow Jones and Haoxi Health
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dow and Haoxi is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Dow Jones i.e., Dow Jones and Haoxi Health go up and down completely randomly.
Pair Corralation between Dow Jones and Haoxi Health
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.06 times more return on investment than Haoxi Health. However, Dow Jones Industrial is 15.86 times less risky than Haoxi Health. It trades about 0.08 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.06 per unit of risk. If you would invest 3,359,634 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 1,070,017 from holding Dow Jones Industrial or generate 31.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 42.54% |
| Values | Daily Returns |
Dow Jones Industrial vs. Haoxi Health Technology
Performance |
| Timeline |
Dow Jones and Haoxi Health Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Haoxi Health Technology
Pair trading matchups for Haoxi Health
Pair Trading with Dow Jones and Haoxi Health
The main advantage of trading using opposite Dow Jones and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health's long position.| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
| Haoxi Health vs. CuriosityStream | Haoxi Health vs. iQIYI Inc | Haoxi Health vs. Sea | Haoxi Health vs. Scienjoy Holding Corp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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