Correlation Between Chengdu Spaceon and Dow Jones
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Dow Jones Industrial, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Dow Jones.
Diversification Opportunities for Chengdu Spaceon and Dow Jones
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Dow is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics 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 Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and Dow Jones go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Dow Jones
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 4.86 times more return on investment than Dow Jones. However, Chengdu Spaceon is 4.86 times more volatile than Dow Jones Industrial. It trades about 0.19 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.19 per unit of risk. If you would invest 1,191 in Chengdu Spaceon Electronics on September 10, 2024 and sell it today you would earn a total of 526.00 from holding Chengdu Spaceon Electronics or generate 44.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 90.77% |
Values | Daily Returns |
Chengdu Spaceon Electronics vs. Dow Jones Industrial
Performance |
Timeline |
Chengdu Spaceon and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Chengdu Spaceon Electronics
Pair trading matchups for Chengdu Spaceon
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Chengdu Spaceon and Dow Jones
The main advantage of trading using opposite Chengdu Spaceon and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.Chengdu Spaceon vs. Guangzhou Shangpin Home | Chengdu Spaceon vs. Lander Sports Development | Chengdu Spaceon vs. China Sports Industry | Chengdu Spaceon vs. Shandong Homey Aquatic |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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