Correlation Between Jinhui Mining and Dow Jones
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By analyzing existing cross correlation between Jinhui Mining Co and Dow Jones Industrial, you can compare the effects of market volatilities on Jinhui Mining 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 Jinhui Mining with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Dow Jones.
Diversification Opportunities for Jinhui Mining and Dow Jones
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Dow is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co 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 Jinhui Mining 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 Jinhui Mining Co 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 Jinhui Mining i.e., Jinhui Mining and Dow Jones go up and down completely randomly.
Pair Corralation between Jinhui Mining and Dow Jones
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 3.42 times more return on investment than Dow Jones. However, Jinhui Mining is 3.42 times more volatile than Dow Jones Industrial. It trades about 0.09 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.2 per unit of risk. If you would invest 1,059 in Jinhui Mining Co on September 10, 2024 and sell it today you would earn a total of 125.00 from holding Jinhui Mining Co or generate 11.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 90.63% |
Values | Daily Returns |
Jinhui Mining Co vs. Dow Jones Industrial
Performance |
Timeline |
Jinhui Mining and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Jinhui Mining Co
Pair trading matchups for Jinhui Mining
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jinhui Mining and Dow Jones
The main advantage of trading using opposite Jinhui Mining and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining 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.Jinhui Mining vs. Tongyu Communication | Jinhui Mining vs. Hubei Yingtong Telecommunication | Jinhui Mining vs. Guangdong Shenglu Telecommunication | Jinhui Mining vs. Dr Peng Telecom |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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