Correlation Between Huize Holding and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Huize Holding 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 Huize Holding and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huize Holding and Dow Jones Industrial, you can compare the effects of market volatilities on Huize Holding 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 Huize Holding with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huize Holding and Dow Jones.
Diversification Opportunities for Huize Holding and Dow Jones
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huize and Dow is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Huize Holding 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 Huize Holding 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 Huize Holding 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 Huize Holding i.e., Huize Holding and Dow Jones go up and down completely randomly.
Pair Corralation between Huize Holding and Dow Jones
Given the investment horizon of 90 days Huize Holding is expected to under-perform the Dow Jones. In addition to that, Huize Holding is 7.61 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of volatility. If you would invest 3,428,864 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 1,044,793 from holding Dow Jones Industrial or generate 30.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huize Holding vs. Dow Jones Industrial
Performance |
| Timeline |
Huize Holding and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Huize Holding
Pair trading matchups for Huize Holding
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Huize Holding and Dow Jones
The main advantage of trading using opposite Huize Holding and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huize Holding 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.| Huize Holding vs. CorVel Corp | Huize Holding vs. eHealth | Huize Holding vs. Aquagold International | Huize Holding vs. Morningstar Unconstrained Allocation |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| 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 | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |