Correlation Between Dow Jones and Namchow Food
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By analyzing existing cross correlation between Dow Jones Industrial and Namchow Food Group, you can compare the effects of market volatilities on Dow Jones and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Namchow Food.
Diversification Opportunities for Dow Jones and Namchow Food
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Namchow is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Dow Jones i.e., Dow Jones and Namchow Food go up and down completely randomly.
Pair Corralation between Dow Jones and Namchow Food
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the Namchow Food. But the index apears to be less risky and, when comparing its historical volatility, Dow Jones Industrial is 1.32 times less risky than Namchow Food. The index trades about -0.25 of its potential returns per unit of risk. The Namchow Food Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,674 in Namchow Food Group on December 5, 2024 and sell it today you would earn a total of 18.00 from holding Namchow Food Group or generate 1.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Dow Jones Industrial vs. Namchow Food Group
Performance |
Timeline |
Dow Jones and Namchow Food Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Namchow Food Group
Pair trading matchups for Namchow Food
Pair Trading with Dow Jones and Namchow Food
The main advantage of trading using opposite Dow Jones and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.Dow Jones vs. Ecovyst | Dow Jones vs. ioneer Ltd American | Dow Jones vs. Eastman Chemical | Dow Jones vs. Zijin Mining Group |
Namchow Food vs. Chengdu Xingrong Investment | Namchow Food vs. Cansino Biologics | Namchow Food vs. Jiahe Foods Industry | Namchow Food vs. Xinjiang Tianrun Dairy |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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