Correlation Between Wing Yip and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Wing Yip 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 Wing Yip and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wing Yip Food and Dow Jones Industrial, you can compare the effects of market volatilities on Wing Yip 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 Wing Yip with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wing Yip and Dow Jones.
Diversification Opportunities for Wing Yip and Dow Jones
Very good diversification
The 3 months correlation between Wing and Dow is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Wing Yip Food 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 Wing Yip 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 Wing Yip Food 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 Wing Yip i.e., Wing Yip and Dow Jones go up and down completely randomly.
Pair Corralation between Wing Yip and Dow Jones
Given the investment horizon of 90 days Wing Yip Food is expected to generate 393.54 times more return on investment than Dow Jones. However, Wing Yip is 393.54 times more volatile than Dow Jones Industrial. It trades about 0.32 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 per unit of risk. If you would invest 0.00 in Wing Yip Food on September 8, 2024 and sell it today you would earn a total of 471.00 from holding Wing Yip Food or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
Wing Yip Food vs. Dow Jones Industrial
Performance |
| Timeline |
Wing Yip and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Wing Yip Food
Pair trading matchups for Wing Yip
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Wing Yip and Dow Jones
The main advantage of trading using opposite Wing Yip and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wing Yip 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.| Wing Yip vs. Lamb Weston Holdings | Wing Yip vs. Westrock Coffee | Wing Yip vs. Central Garden Pet | Wing Yip vs. Farmmi Inc |
| Dow Jones vs. JBG SMITH Properties | Dow Jones vs. Weyco Group | Dow Jones vs. Western Sierra Mining | Dow Jones vs. Summit Materials |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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