Correlation Between XinJiang GuoTong and Dow Jones
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Dow Jones Industrial, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Dow Jones.
Diversification Opportunities for XinJiang GuoTong and Dow Jones
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Dow is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline 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 XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Dow Jones go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Dow Jones
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 5.16 times more return on investment than Dow Jones. However, XinJiang GuoTong is 5.16 times more volatile than Dow Jones Industrial. It trades about 0.15 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.05 per unit of risk. If you would invest 697.00 in XinJiang GuoTong Pipeline on September 25, 2024 and sell it today you would earn a total of 266.00 from holding XinJiang GuoTong Pipeline or generate 38.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 93.65% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Dow Jones Industrial
Performance |
Timeline |
XinJiang GuoTong and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
XinJiang GuoTong Pipeline
Pair trading matchups for XinJiang GuoTong
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with XinJiang GuoTong and Dow Jones
The main advantage of trading using opposite XinJiang GuoTong and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.XinJiang GuoTong vs. Kweichow Moutai Co | XinJiang GuoTong vs. Contemporary Amperex Technology | XinJiang GuoTong vs. G bits Network Technology | XinJiang GuoTong vs. BYD Co Ltd |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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