Correlation Between Tungray Technologies and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Tungray Technologies 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 Tungray Technologies and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tungray Technologies Class and Dow Jones Industrial, you can compare the effects of market volatilities on Tungray Technologies 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 Tungray Technologies with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tungray Technologies and Dow Jones.
Diversification Opportunities for Tungray Technologies and Dow Jones
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tungray and Dow is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tungray Technologies Class 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 Tungray Technologies 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 Tungray Technologies Class 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 Tungray Technologies i.e., Tungray Technologies and Dow Jones go up and down completely randomly.
Pair Corralation between Tungray Technologies and Dow Jones
Given the investment horizon of 90 days Tungray Technologies Class is expected to generate 12.17 times more return on investment than Dow Jones. However, Tungray Technologies is 12.17 times more volatile than Dow Jones Industrial. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 400.00 in Tungray Technologies Class on September 2, 2024 and sell it today you would lose (123.00) from holding Tungray Technologies Class or give up 30.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
Tungray Technologies Class vs. Dow Jones Industrial
Performance |
| Timeline |
Tungray Technologies and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Tungray Technologies Class
Pair trading matchups for Tungray Technologies
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Tungray Technologies and Dow Jones
The main advantage of trading using opposite Tungray Technologies and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tungray Technologies 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.| Tungray Technologies vs. Knowles Cor | Tungray Technologies vs. Ubiquiti Networks | Tungray Technologies vs. AmpliTech Group | Tungray Technologies vs. Viavi Solutions |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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