Correlation Between Dymatic Chemicals and Xinjiang Communications
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By analyzing existing cross correlation between Dymatic Chemicals and Xinjiang Communications Construction, you can compare the effects of market volatilities on Dymatic Chemicals and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Xinjiang Communications.
Diversification Opportunities for Dymatic Chemicals and Xinjiang Communications
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dymatic and Xinjiang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Xinjiang Communications
Assuming the 90 days trading horizon Dymatic Chemicals is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, Dymatic Chemicals is 1.33 times less risky than Xinjiang Communications. The stock trades about -0.01 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,336 in Xinjiang Communications Construction on November 2, 2024 and sell it today you would lose (263.00) from holding Xinjiang Communications Construction or give up 19.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Dymatic Chemicals |
| Xinjiang Communications |
Dymatic Chemicals and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Xinjiang Communications
The main advantage of trading using opposite Dymatic Chemicals and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' 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 |
| Xinjiang Communications vs. AVIC Fund Management | Xinjiang Communications vs. Chenzhou Jingui Silver | Xinjiang Communications vs. Air China Ltd | Xinjiang Communications vs. Innovative Medical Management |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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