Correlation Between Dymatic Chemicals and North Huajin
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By analyzing existing cross correlation between Dymatic Chemicals and North Huajin Chemical, you can compare the effects of market volatilities on Dymatic Chemicals and North Huajin 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 Dymatic Chemicals with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and North Huajin.
Diversification Opportunities for Dymatic Chemicals and North Huajin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dymatic and North is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Dymatic Chemicals 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 Dymatic Chemicals are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and North Huajin go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and North Huajin
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 1.14 times more return on investment than North Huajin. However, Dymatic Chemicals is 1.14 times more volatile than North Huajin Chemical. It trades about 0.37 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.03 per unit of risk. If you would invest 560.00 in Dymatic Chemicals on August 28, 2024 and sell it today you would earn a total of 201.00 from holding Dymatic Chemicals or generate 35.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. North Huajin Chemical
Performance |
| Timeline |
| Dymatic Chemicals |
| North Huajin Chemical |
Dymatic Chemicals and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and North Huajin
The main advantage of trading using opposite Dymatic Chemicals and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Dymatic Chemicals vs. Zijin Mining Group | Dymatic Chemicals vs. Wanhua Chemical Group | Dymatic Chemicals vs. Baoshan Iron Steel | Dymatic Chemicals vs. Shandong Gold Mining |
| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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