Correlation Between Dymatic Chemicals and Guilin Seamild
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By analyzing existing cross correlation between Dymatic Chemicals and Guilin Seamild Foods, you can compare the effects of market volatilities on Dymatic Chemicals and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Guilin Seamild.
Diversification Opportunities for Dymatic Chemicals and Guilin Seamild
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Guilin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Guilin Seamild go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Guilin Seamild
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 1.62 times less return on investment than Guilin Seamild. In addition to that, Dymatic Chemicals is 1.04 times more volatile than Guilin Seamild Foods. It trades about 0.04 of its total potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.06 per unit of volatility. If you would invest 1,263 in Guilin Seamild Foods on October 12, 2024 and sell it today you would earn a total of 333.00 from holding Guilin Seamild Foods or generate 26.37% 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. Guilin Seamild Foods
Performance |
| Timeline |
| Dymatic Chemicals |
| Guilin Seamild Foods |
Dymatic Chemicals and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Guilin Seamild
The main advantage of trading using opposite Dymatic Chemicals and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Dymatic Chemicals vs. Lecron Energy Saving | Dymatic Chemicals vs. Unisplendour Corp | Dymatic Chemicals vs. Ping An Insurance | Dymatic Chemicals vs. Xiamen Bank Co |
| Guilin Seamild vs. Beijing Kingsoft Office | Guilin Seamild vs. Fibocom Wireless | Guilin Seamild vs. Ningbo MedicalSystem Biotechnology | Guilin Seamild vs. Guangdong Marubi Biotechnology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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