Correlation Between Henan Shuanghui and Dow Jones
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By analyzing existing cross correlation between Henan Shuanghui Investment and Dow Jones Industrial, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Dow Jones.
Diversification Opportunities for Henan Shuanghui and Dow Jones
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Henan and Dow is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Dow Jones go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Dow Jones
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 1.35 times more return on investment than Dow Jones. However, Henan Shuanghui is 1.35 times more volatile than Dow Jones Industrial. It trades about 0.36 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.21 per unit of risk. If you would invest 2,416 in Henan Shuanghui Investment on September 26, 2024 and sell it today you would earn a total of 194.00 from holding Henan Shuanghui Investment or generate 8.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Henan Shuanghui Investment vs. Dow Jones Industrial
Performance |
Timeline |
Henan Shuanghui and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Henan Shuanghui Investment
Pair trading matchups for Henan Shuanghui
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Henan Shuanghui and Dow Jones
The main advantage of trading using opposite Henan Shuanghui and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.Henan Shuanghui vs. Guangzhou Haige Communications | Henan Shuanghui vs. Metallurgical of | Henan Shuanghui vs. Guangdong Jingyi Metal | Henan Shuanghui vs. Guangdong Shenglu Telecommunication |
Dow Jones vs. Sabre Corpo | Dow Jones vs. Cannae Holdings | Dow Jones vs. Pekin Life Insurance | Dow Jones vs. Supercom |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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