Correlation Between Shenzhen Shenbao and Dow Jones
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By analyzing existing cross correlation between Shenzhen Shenbao Industrial and Dow Jones Industrial, you can compare the effects of market volatilities on Shenzhen Shenbao 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 Shenzhen Shenbao with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Shenbao and Dow Jones.
Diversification Opportunities for Shenzhen Shenbao and Dow Jones
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Dow is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Shenbao Industrial 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 Shenzhen Shenbao 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 Shenzhen Shenbao Industrial 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 Shenzhen Shenbao i.e., Shenzhen Shenbao and Dow Jones go up and down completely randomly.
Pair Corralation between Shenzhen Shenbao and Dow Jones
Assuming the 90 days trading horizon Shenzhen Shenbao Industrial is expected to generate 1.46 times more return on investment than Dow Jones. However, Shenzhen Shenbao is 1.46 times more volatile than Dow Jones Industrial. It trades about -0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.03 per unit of risk. If you would invest 657.00 in Shenzhen Shenbao Industrial on December 25, 2024 and sell it today you would lose (11.00) from holding Shenzhen Shenbao Industrial or give up 1.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Shenzhen Shenbao Industrial vs. Dow Jones Industrial
Performance |
Timeline |
Shenzhen Shenbao and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Shenzhen Shenbao Industrial
Pair trading matchups for Shenzhen Shenbao
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shenzhen Shenbao and Dow Jones
The main advantage of trading using opposite Shenzhen Shenbao and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Shenbao 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.Shenzhen Shenbao vs. Advanced Technology Materials | Shenzhen Shenbao vs. Zhejiang Kingland Pipeline | Shenzhen Shenbao vs. Citic Guoan Wine | Shenzhen Shenbao vs. Guangdong Redwall New |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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