Correlation Between Shenwan Hongyuan and Dow Jones
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By analyzing existing cross correlation between Shenwan Hongyuan Group and Dow Jones Industrial, you can compare the effects of market volatilities on Shenwan Hongyuan 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 Shenwan Hongyuan with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwan Hongyuan and Dow Jones.
Diversification Opportunities for Shenwan Hongyuan and Dow Jones
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenwan and Dow is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shenwan Hongyuan Group 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 Shenwan Hongyuan 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 Shenwan Hongyuan Group 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 Shenwan Hongyuan i.e., Shenwan Hongyuan and Dow Jones go up and down completely randomly.
Pair Corralation between Shenwan Hongyuan and Dow Jones
Assuming the 90 days trading horizon Shenwan Hongyuan Group is expected to generate 1.49 times more return on investment than Dow Jones. However, Shenwan Hongyuan is 1.49 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 -0.3 per unit of risk. If you would invest 525.00 in Shenwan Hongyuan Group on September 24, 2024 and sell it today you would earn a total of 16.00 from holding Shenwan Hongyuan Group or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Shenwan Hongyuan Group vs. Dow Jones Industrial
Performance |
Timeline |
Shenwan Hongyuan and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Shenwan Hongyuan Group
Pair trading matchups for Shenwan Hongyuan
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shenwan Hongyuan and Dow Jones
The main advantage of trading using opposite Shenwan Hongyuan and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwan Hongyuan 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.Shenwan Hongyuan vs. Kweichow Moutai Co | Shenwan Hongyuan vs. Contemporary Amperex Technology | Shenwan Hongyuan vs. G bits Network Technology | Shenwan Hongyuan vs. BYD Co Ltd |
Dow Jones vs. Teleflex Incorporated | Dow Jones vs. Sonida Senior Living | Dow Jones vs. Avadel Pharmaceuticals PLC | Dow Jones vs. Cardinal Health |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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