Correlation Between Dow Jones and Huaxia Eye
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By analyzing existing cross correlation between Dow Jones Industrial and Huaxia Eye Hospital, you can compare the effects of market volatilities on Dow Jones and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Huaxia Eye.
Diversification Opportunities for Dow Jones and Huaxia Eye
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dow and Huaxia is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Dow Jones i.e., Dow Jones and Huaxia Eye go up and down completely randomly.
Pair Corralation between Dow Jones and Huaxia Eye
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the Huaxia Eye. But the index apears to be less risky and, when comparing its historical volatility, Dow Jones Industrial is 2.86 times less risky than Huaxia Eye. The index trades about -0.21 of its potential returns per unit of risk. The Huaxia Eye Hospital is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,094 in Huaxia Eye Hospital on September 25, 2024 and sell it today you would lose (50.00) from holding Huaxia Eye Hospital or give up 2.39% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Dow Jones Industrial vs. Huaxia Eye Hospital
Performance |
Timeline |
Dow Jones and Huaxia Eye Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Huaxia Eye Hospital
Pair trading matchups for Huaxia Eye
Pair Trading with Dow Jones and Huaxia Eye
The main advantage of trading using opposite Dow Jones and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.Dow Jones vs. Sabre Corpo | Dow Jones vs. Cannae Holdings | Dow Jones vs. Pekin Life Insurance | Dow Jones vs. Supercom |
Huaxia Eye vs. Gansu Huangtai Wine marketing | Huaxia Eye vs. Beijing Kaiwen Education | Huaxia Eye vs. Liaoning Dingjide Petrochemical | Huaxia Eye vs. Jiangsu Phoenix Publishing |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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