Correlation Between Dymatic Chemicals and Shaanxi Meineng
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By analyzing existing cross correlation between Dymatic Chemicals and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Dymatic Chemicals and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Shaanxi Meineng.
Diversification Opportunities for Dymatic Chemicals and Shaanxi Meineng
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Shaanxi is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Shaanxi Meineng
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 0.99 times more return on investment than Shaanxi Meineng. However, Dymatic Chemicals is 1.01 times less risky than Shaanxi Meineng. It trades about -0.02 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.06 per unit of risk. If you would invest 603.00 in Dymatic Chemicals on October 28, 2024 and sell it today you would lose (7.00) from holding Dymatic Chemicals or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Dymatic Chemicals |
| Shaanxi Meineng Clean |
Dymatic Chemicals and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Shaanxi Meineng
The main advantage of trading using opposite Dymatic Chemicals and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng'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 |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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