Correlation Between SI TECH and Dow Jones
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By analyzing existing cross correlation between SI TECH Information Technology and Dow Jones Industrial, you can compare the effects of market volatilities on SI TECH 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 SI TECH with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI TECH and Dow Jones.
Diversification Opportunities for SI TECH and Dow Jones
Weak diversification
The 3 months correlation between 300608 and Dow is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology 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 SI TECH 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 SI TECH Information Technology 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 SI TECH i.e., SI TECH and Dow Jones go up and down completely randomly.
Pair Corralation between SI TECH and Dow Jones
Assuming the 90 days trading horizon SI TECH Information Technology is expected to generate 7.18 times more return on investment than Dow Jones. However, SI TECH is 7.18 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.04 per unit of risk. If you would invest 950.00 in SI TECH Information Technology on September 23, 2024 and sell it today you would earn a total of 370.00 from holding SI TECH Information Technology or generate 38.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 93.85% |
Values | Daily Returns |
SI TECH Information Technology vs. Dow Jones Industrial
Performance |
Timeline |
SI TECH and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
SI TECH Information Technology
Pair trading matchups for SI TECH
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SI TECH and Dow Jones
The main advantage of trading using opposite SI TECH and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI TECH 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.SI TECH vs. Railway Signal Communication | SI TECH vs. XinJiang GuoTong Pipeline | SI TECH vs. Linewell Software Co | SI TECH vs. Yuan Longping High tech |
Dow Jones vs. Nok Airlines Public | Dow Jones vs. Alaska Air Group | Dow Jones vs. Universal Music Group | Dow Jones vs. Copa Holdings SA |
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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