Correlation Between Dow Jones and Zhejiang Changhua
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By analyzing existing cross correlation between Dow Jones Industrial and Zhejiang Changhua Auto, you can compare the effects of market volatilities on Dow Jones and Zhejiang Changhua 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 Zhejiang Changhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Zhejiang Changhua.
Diversification Opportunities for Dow Jones and Zhejiang Changhua
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and Zhejiang is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Zhejiang Changhua Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Changhua Auto 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 Zhejiang Changhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Changhua Auto has no effect on the direction of Dow Jones i.e., Dow Jones and Zhejiang Changhua go up and down completely randomly.
Pair Corralation between Dow Jones and Zhejiang Changhua
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.51 times more return on investment than Zhejiang Changhua. However, Dow Jones Industrial is 1.98 times less risky than Zhejiang Changhua. It trades about 0.11 of its potential returns per unit of risk. Zhejiang Changhua Auto is currently generating about -0.07 per unit of risk. If you would invest 4,571,134 in Dow Jones Industrial on September 9, 2025 and sell it today you would earn a total of 224,365 from holding Dow Jones Industrial or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.19% |
| Values | Daily Returns |
Dow Jones Industrial vs. Zhejiang Changhua Auto
Performance |
| Timeline |
Dow Jones and Zhejiang Changhua Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Zhejiang Changhua Auto
Pair trading matchups for Zhejiang Changhua
Pair Trading with Dow Jones and Zhejiang Changhua
The main advantage of trading using opposite Dow Jones and Zhejiang Changhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Zhejiang Changhua 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 Zhejiang Changhua will offset losses from the drop in Zhejiang Changhua's long position.| Dow Jones vs. Vulcan Materials | Dow Jones vs. Yokohama Rubber Co | Dow Jones vs. InRetail Per Corp | Dow Jones vs. Morgan Advanced Materials |
| Zhejiang Changhua vs. Hua Xia Bank | Zhejiang Changhua vs. Qilu Bank Co | Zhejiang Changhua vs. Jiaozuo Wanfang Aluminum | Zhejiang Changhua vs. Shanghai Yanpu Metal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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