Correlation Between Scienjoy Holding and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Scienjoy 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 Scienjoy 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 Scienjoy Holding Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Scienjoy 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 Scienjoy Holding with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and Dow Jones.
Diversification Opportunities for Scienjoy Holding and Dow Jones
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scienjoy and Dow is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp 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 Scienjoy 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 Scienjoy Holding Corp 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 Scienjoy Holding i.e., Scienjoy Holding and Dow Jones go up and down completely randomly.
Pair Corralation between Scienjoy Holding and Dow Jones
Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to generate 7.44 times more return on investment than Dow Jones. However, Scienjoy Holding is 7.44 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 91.00 in Scienjoy Holding Corp on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Scienjoy Holding Corp or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Scienjoy Holding Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Scienjoy Holding and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Scienjoy Holding Corp
Pair trading matchups for Scienjoy Holding
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Scienjoy Holding and Dow Jones
The main advantage of trading using opposite Scienjoy Holding and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy 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.| Scienjoy Holding vs. Cumulus Media Class | Scienjoy Holding vs. E W Scripps | Scienjoy Holding vs. Beasley Broadcast Group | Scienjoy Holding vs. Gray Television |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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