Correlation Between Dow Jones and Zhuzhou Kibing
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By analyzing existing cross correlation between Dow Jones Industrial and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Dow Jones and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Zhuzhou Kibing.
Diversification Opportunities for Dow Jones and Zhuzhou Kibing
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dow and Zhuzhou is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Dow Jones i.e., Dow Jones and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Dow Jones and Zhuzhou Kibing
Assuming the 90 days trading horizon Dow Jones is expected to generate 15.11 times less return on investment than Zhuzhou Kibing. But when comparing it to its historical volatility, Dow Jones Industrial is 4.26 times less risky than Zhuzhou Kibing. It trades about 0.04 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 474.00 in Zhuzhou Kibing Group on September 23, 2024 and sell it today you would earn a total of 124.00 from holding Zhuzhou Kibing Group or generate 26.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 93.85% |
Values | Daily Returns |
Dow Jones Industrial vs. Zhuzhou Kibing Group
Performance |
Timeline |
Dow Jones and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Zhuzhou Kibing Group
Pair trading matchups for Zhuzhou Kibing
Pair Trading with Dow Jones and Zhuzhou Kibing
The main advantage of trading using opposite Dow Jones and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.Dow Jones vs. Nok Airlines Public | Dow Jones vs. Alaska Air Group | Dow Jones vs. Universal Music Group | Dow Jones vs. Copa Holdings SA |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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