Correlation Between Dymatic Chemicals and PKU HealthCare
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By analyzing existing cross correlation between Dymatic Chemicals and PKU HealthCare Corp, you can compare the effects of market volatilities on Dymatic Chemicals and PKU HealthCare 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 PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and PKU HealthCare.
Diversification Opportunities for Dymatic Chemicals and PKU HealthCare
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dymatic and PKU is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and PKU HealthCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKU HealthCare Corp 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 PKU HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKU HealthCare Corp has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and PKU HealthCare go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and PKU HealthCare
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 2.29 times more return on investment than PKU HealthCare. However, Dymatic Chemicals is 2.29 times more volatile than PKU HealthCare Corp. It trades about 0.17 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.08 per unit of risk. If you would invest 539.00 in Dymatic Chemicals on September 19, 2024 and sell it today you would earn a total of 98.00 from holding Dymatic Chemicals or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. PKU HealthCare Corp
Performance |
| Timeline |
| Dymatic Chemicals |
| PKU HealthCare Corp |
Dymatic Chemicals and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and PKU HealthCare
The main advantage of trading using opposite Dymatic Chemicals and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, PKU HealthCare 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 PKU HealthCare will offset losses from the drop in PKU HealthCare'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 |
| PKU HealthCare vs. Shenyang Chemical Industry | PKU HealthCare vs. North Huajin Chemical | PKU HealthCare vs. Dymatic Chemicals | PKU HealthCare vs. Pengxin International 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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