Correlation Between Shenyang Chemical and Dymatic Chemicals
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By analyzing existing cross correlation between Shenyang Chemical Industry and Dymatic Chemicals, you can compare the effects of market volatilities on Shenyang Chemical 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 Shenyang Chemical with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Dymatic Chemicals.
Diversification Opportunities for Shenyang Chemical and Dymatic Chemicals
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Dymatic is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Shenyang Chemical 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 Shenyang Chemical Industry 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 Shenyang Chemical i.e., Shenyang Chemical and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Dymatic Chemicals
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Dymatic Chemicals. In addition to that, Shenyang Chemical is 1.16 times more volatile than Dymatic Chemicals. It trades about -0.02 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.01 per unit of volatility. If you would invest 765.00 in Dymatic Chemicals on November 2, 2024 and sell it today you would lose (165.00) from holding Dymatic Chemicals or give up 21.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Dymatic Chemicals
Performance |
| Timeline |
| Shenyang Chemical |
| Dymatic Chemicals |
Shenyang Chemical and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Dymatic Chemicals
The main advantage of trading using opposite Shenyang Chemical and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical 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.| Shenyang Chemical vs. Fibocom Wireless | Shenyang Chemical vs. Runjian Communication Co | Shenyang Chemical vs. Guangdong Jinma Entertainment | Shenyang Chemical vs. Fiberhome Telecommunication Technologies |
| Dymatic Chemicals vs. Zijin Mining Group | Dymatic Chemicals vs. Wanhua Chemical Group | Dymatic Chemicals vs. Baoshan Iron Steel | Dymatic Chemicals vs. Shandong Gold Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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