Correlation Between ZIJIN MINH and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ZIJIN MINH and Dow Jones 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 ZIJIN MINH and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZIJIN MINH UNSPADR20 and Dow Jones Industrial, you can compare the effects of market volatilities on ZIJIN MINH and Dow Jones 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 ZIJIN MINH with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIJIN MINH and Dow Jones.
Diversification Opportunities for ZIJIN MINH and Dow Jones
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZIJIN and Dow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ZIJIN MINH UNSPADR20 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and ZIJIN MINH 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 ZIJIN MINH UNSPADR20 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of ZIJIN MINH i.e., ZIJIN MINH and Dow Jones go up and down completely randomly.
Pair Corralation between ZIJIN MINH and Dow Jones
Assuming the 90 days trading horizon ZIJIN MINH UNSPADR20 is expected to generate 3.91 times more return on investment than Dow Jones. However, ZIJIN MINH is 3.91 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 2,364 in ZIJIN MINH UNSPADR20 on August 31, 2024 and sell it today you would earn a total of 1,596 from holding ZIJIN MINH UNSPADR20 or generate 67.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.56% |
| Values | Daily Returns |
ZIJIN MINH UNSPADR20 vs. Dow Jones Industrial
Performance |
| Timeline |
ZIJIN MINH and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ZIJIN MINH UNSPADR20
Pair trading matchups for ZIJIN MINH
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ZIJIN MINH and Dow Jones
The main advantage of trading using opposite ZIJIN MINH and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIJIN MINH position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| ZIJIN MINH vs. Lifeway Foods | ZIJIN MINH vs. CN MODERN DAIRY | ZIJIN MINH vs. GRIFFIN MINING LTD | ZIJIN MINH vs. GALENA MINING LTD |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |