Correlation Between Dow Jones and Huagong Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Huagong Tech Co, you can compare the effects of market volatilities on Dow Jones and Huagong Tech 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 Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Huagong Tech.
Diversification Opportunities for Dow Jones and Huagong Tech
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dow and Huagong is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech 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 Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of Dow Jones i.e., Dow Jones and Huagong Tech go up and down completely randomly.
Pair Corralation between Dow Jones and Huagong Tech
Assuming the 90 days trading horizon Dow Jones is expected to generate 2.26 times less return on investment than Huagong Tech. But when comparing it to its historical volatility, Dow Jones Industrial is 4.27 times less risky than Huagong Tech. It trades about 0.07 of its potential returns per unit of risk. Huagong Tech Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,403 in Huagong Tech Co on December 7, 2024 and sell it today you would earn a total of 1,096 from holding Huagong Tech Co or generate 32.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.66% |
Values | Daily Returns |
Dow Jones Industrial vs. Huagong Tech Co
Performance |
Timeline |
Dow Jones and Huagong Tech Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Huagong Tech Co
Pair trading matchups for Huagong Tech
Pair Trading with Dow Jones and Huagong Tech
The main advantage of trading using opposite Dow Jones and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.Dow Jones vs. John B Sanfilippo | Dow Jones vs. Middlesex Water | Dow Jones vs. Pinterest | Dow Jones vs. Albertsons Companies |
Huagong Tech vs. Guangdong Transtek Medical | Huagong Tech vs. CareRay Digital Medical | Huagong Tech vs. By health | Huagong Tech vs. Andon Health Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |