Correlation Between Dymatic Chemicals and Guangzhou Seagull
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dymatic Chemicals and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Dymatic Chemicals and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Guangzhou Seagull.
Diversification Opportunities for Dymatic Chemicals and Guangzhou Seagull
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Guangzhou Seagull
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 0.59 times more return on investment than Guangzhou Seagull. However, Dymatic Chemicals is 1.69 times less risky than Guangzhou Seagull. It trades about -0.34 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.27 per unit of risk. If you would invest 671.00 in Dymatic Chemicals on October 14, 2024 and sell it today you would lose (109.00) from holding Dymatic Chemicals or give up 16.24% 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. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Dymatic Chemicals |
| Guangzhou Seagull Kitchen |
Dymatic Chemicals and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Guangzhou Seagull
The main advantage of trading using opposite Dymatic Chemicals and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Dymatic Chemicals vs. Jiangsu Yueda Investment | Dymatic Chemicals vs. Zoje Resources Investment | Dymatic Chemicals vs. Beijing Enlight Media | Dymatic Chemicals vs. Cultural Investment Holdings |
| Guangzhou Seagull vs. Jilin Chemical Fibre | Guangzhou Seagull vs. Sichuan Hebang Biotechnology | Guangzhou Seagull vs. Changchun BCHT Biotechnology | Guangzhou Seagull vs. Dymatic Chemicals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |