Correlation Between Shin Ruenn and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Dow Jones at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shin Ruenn and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Ruenn Development and Dow Jones Industrial, you can compare the effects of market volatilities on Shin Ruenn 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 Shin Ruenn with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Dow Jones.
Diversification Opportunities for Shin Ruenn and Dow Jones
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shin and Dow is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development 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 Shin Ruenn 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 Shin Ruenn Development 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 Shin Ruenn i.e., Shin Ruenn and Dow Jones go up and down completely randomly.
Pair Corralation between Shin Ruenn and Dow Jones
Assuming the 90 days trading horizon Shin Ruenn Development is expected to under-perform the Dow Jones. In addition to that, Shin Ruenn is 2.35 times more volatile than Dow Jones Industrial. It trades about -0.17 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.29 per unit of volatility. If you would invest 4,473,657 in Dow Jones Industrial on September 25, 2024 and sell it today you would lose (182,962) from holding Dow Jones Industrial or give up 4.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.91% |
Values | Daily Returns |
Shin Ruenn Development vs. Dow Jones Industrial
Performance |
Timeline |
Shin Ruenn and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Shin Ruenn Development
Pair trading matchups for Shin Ruenn
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shin Ruenn and Dow Jones
The main advantage of trading using opposite Shin Ruenn and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn 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.Shin Ruenn vs. Shinkong Insurance Co | Shin Ruenn vs. Dimension Computer Technology | Shin Ruenn vs. Emerging Display Technologies | Shin Ruenn vs. Cameo Communications |
Dow Jones vs. Aerofoam Metals | Dow Jones vs. Lion One Metals | Dow Jones vs. Blue Moon Metals | Dow Jones vs. Xunlei Ltd Adr |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |