Correlation Between Dymatic Chemicals and Beijing Kaiwen
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By analyzing existing cross correlation between Dymatic Chemicals and Beijing Kaiwen Education, you can compare the effects of market volatilities on Dymatic Chemicals and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Beijing Kaiwen.
Diversification Opportunities for Dymatic Chemicals and Beijing Kaiwen
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Beijing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Beijing Kaiwen
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 8.44 times less return on investment than Beijing Kaiwen. But when comparing it to its historical volatility, Dymatic Chemicals is 1.3 times less risky than Beijing Kaiwen. It trades about 0.01 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 472.00 in Beijing Kaiwen Education on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Beijing Kaiwen Education or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Dymatic Chemicals |
| Beijing Kaiwen Education |
Dymatic Chemicals and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Beijing Kaiwen
The main advantage of trading using opposite Dymatic Chemicals and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Dymatic Chemicals vs. Jointo Energy Investment | Dymatic Chemicals vs. Tieling Newcity Investment | Dymatic Chemicals vs. Guangzhou Automobile Group | Dymatic Chemicals vs. Jiangsu Yueda Investment |
| Beijing Kaiwen vs. Cultural Investment Holdings | Beijing Kaiwen vs. Gome Telecom Equipment | Beijing Kaiwen vs. Bus Online Co | Beijing Kaiwen vs. Holitech Technology Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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