Correlation Between Dymatic Chemicals and Shenyang Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dymatic Chemicals and Shenyang Chemical Industry, you can compare the effects of market volatilities on Dymatic Chemicals and Shenyang Chemical 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 Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Shenyang Chemical.
Diversification Opportunities for Dymatic Chemicals and Shenyang Chemical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Shenyang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang 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 Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Shenyang Chemical
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 0.86 times more return on investment than Shenyang Chemical. However, Dymatic Chemicals is 1.16 times less risky than Shenyang Chemical. It trades about -0.01 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about -0.02 per unit of risk. 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 |
Dymatic Chemicals vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Dymatic Chemicals |
| Shenyang Chemical |
Dymatic Chemicals and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Shenyang Chemical
The main advantage of trading using opposite Dymatic Chemicals and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Shenyang Chemical 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical'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 |
| Shenyang Chemical vs. Fibocom Wireless | Shenyang Chemical vs. Runjian Communication Co | Shenyang Chemical vs. Guangdong Jinma Entertainment | Shenyang Chemical vs. Fiberhome Telecommunication Technologies |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |