Correlation Between Dymatic Chemicals and Contemporary Amperex
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By analyzing existing cross correlation between Dymatic Chemicals and Contemporary Amperex Technology, you can compare the effects of market volatilities on Dymatic Chemicals and Contemporary Amperex 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 Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Contemporary Amperex.
Diversification Opportunities for Dymatic Chemicals and Contemporary Amperex
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Contemporary is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex 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 Contemporary Amperex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contemporary Amperex has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Contemporary Amperex
Assuming the 90 days trading horizon Dymatic Chemicals is expected to under-perform the Contemporary Amperex. But the stock apears to be less risky and, when comparing its historical volatility, Dymatic Chemicals is 1.1 times less risky than Contemporary Amperex. The stock trades about -0.01 of its potential returns per unit of risk. The Contemporary Amperex Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 22,324 in Contemporary Amperex Technology on September 28, 2024 and sell it today you would earn a total of 3,876 from holding Contemporary Amperex Technology or generate 17.36% 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. Contemporary Amperex Technolog
Performance |
| Timeline |
| Dymatic Chemicals |
| Contemporary Amperex |
Dymatic Chemicals and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Contemporary Amperex
The main advantage of trading using opposite Dymatic Chemicals and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Contemporary Amperex 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 Contemporary Amperex will offset losses from the drop in Contemporary Amperex'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 |
| Contemporary Amperex vs. Hengli Petrochemical Co | Contemporary Amperex vs. Dymatic Chemicals | Contemporary Amperex vs. Sinocat Environmental Technology | Contemporary Amperex vs. Ningbo Bohui Chemical |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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