Correlation Between Dow Jones and CITIC Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and CITIC Guoan Information, you can compare the effects of market volatilities on Dow Jones and CITIC Guoan 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 Dow Jones with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CITIC Guoan.
Diversification Opportunities for Dow Jones and CITIC Guoan
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dow and CITIC is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Dow Jones i.e., Dow Jones and CITIC Guoan go up and down completely randomly.
Pair Corralation between Dow Jones and CITIC Guoan
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.35 times more return on investment than CITIC Guoan. However, Dow Jones Industrial is 2.84 times less risky than CITIC Guoan. It trades about -0.04 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.05 per unit of risk. If you would invest 4,257,373 in Dow Jones Industrial on December 30, 2024 and sell it today you would lose (98,983) from holding Dow Jones Industrial or give up 2.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.16% |
Values | Daily Returns |
Dow Jones Industrial vs. CITIC Guoan Information
Performance |
Timeline |
Dow Jones and CITIC Guoan Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CITIC Guoan Information
Pair trading matchups for CITIC Guoan
Pair Trading with Dow Jones and CITIC Guoan
The main advantage of trading using opposite Dow Jones and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Companhia Siderurgica Nacional | Dow Jones vs. POSCO Holdings | Dow Jones vs. Grupo Simec SAB |
CITIC Guoan vs. Hotland Innovation Asset | CITIC Guoan vs. China Sports Industry | CITIC Guoan vs. Lootom Telcovideo Network | CITIC Guoan vs. Yili Chuanning Biotechnology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |