Correlation Between Jinhui Shipping and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Jinhui Shipping 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 Jinhui Shipping and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jinhui Shipping and and Dow Jones Industrial, you can compare the effects of market volatilities on Jinhui Shipping 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 Jinhui Shipping with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Shipping and Dow Jones.
Diversification Opportunities for Jinhui Shipping and Dow Jones
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhui and Dow is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Shipping and 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 Jinhui Shipping 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 Jinhui Shipping and 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 Jinhui Shipping i.e., Jinhui Shipping and Dow Jones go up and down completely randomly.
Pair Corralation between Jinhui Shipping and Dow Jones
Assuming the 90 days trading horizon Jinhui Shipping and is expected to generate 3.24 times more return on investment than Dow Jones. However, Jinhui Shipping is 3.24 times more volatile than Dow Jones Industrial. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of risk. If you would invest 608.00 in Jinhui Shipping and on August 29, 2024 and sell it today you would earn a total of 54.00 from holding Jinhui Shipping and or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Shipping and vs. Dow Jones Industrial
Performance |
| Timeline |
Jinhui Shipping and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jinhui Shipping and
Pair trading matchups for Jinhui Shipping
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jinhui Shipping and Dow Jones
The main advantage of trading using opposite Jinhui Shipping and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Shipping 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.| Jinhui Shipping vs. Golden Ocean Group | Jinhui Shipping vs. Frontline | Jinhui Shipping vs. Dampskibsselskabet Norden AS | Jinhui Shipping vs. BW LPG |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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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