Correlation Between ChengDu Hi and Dymatic Chemicals
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By analyzing existing cross correlation between ChengDu Hi Tech Development and Dymatic Chemicals, you can compare the effects of market volatilities on ChengDu Hi and Dymatic Chemicals 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 ChengDu Hi with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi and Dymatic Chemicals.
Diversification Opportunities for ChengDu Hi and Dymatic Chemicals
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ChengDu and Dymatic is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and ChengDu Hi 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 ChengDu Hi Tech Development are associated (or correlated) with Dymatic Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dymatic Chemicals has no effect on the direction of ChengDu Hi i.e., ChengDu Hi and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between ChengDu Hi and Dymatic Chemicals
Assuming the 90 days trading horizon ChengDu Hi Tech Development is expected to generate 1.72 times more return on investment than Dymatic Chemicals. However, ChengDu Hi is 1.72 times more volatile than Dymatic Chemicals. It trades about 0.03 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.01 per unit of risk. If you would invest 5,664 in ChengDu Hi Tech Development on September 14, 2024 and sell it today you would earn a total of 234.00 from holding ChengDu Hi Tech Development or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Dymatic Chemicals
Performance |
| Timeline |
| ChengDu Hi Tech |
| Dymatic Chemicals |
ChengDu Hi and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi and Dymatic Chemicals
The main advantage of trading using opposite ChengDu Hi and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi position performs unexpectedly, Dymatic Chemicals 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 Dymatic Chemicals will offset losses from the drop in Dymatic Chemicals' long position.| ChengDu Hi vs. China Life Insurance | ChengDu Hi vs. Cinda Securities Co | ChengDu Hi vs. Piotech Inc A | ChengDu Hi vs. Dongxing Sec Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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