Correlation Between Dymatic Chemicals and China Sports
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By analyzing existing cross correlation between Dymatic Chemicals and China Sports Industry, you can compare the effects of market volatilities on Dymatic Chemicals and China Sports 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 China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and China Sports.
Diversification Opportunities for Dymatic Chemicals and China Sports
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and China Sports go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and China Sports
Assuming the 90 days trading horizon Dymatic Chemicals is expected to under-perform the China Sports. But the stock apears to be less risky and, when comparing its historical volatility, Dymatic Chemicals is 1.3 times less risky than China Sports. The stock trades about -0.37 of its potential returns per unit of risk. The China Sports Industry is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 891.00 in China Sports Industry on October 12, 2024 and sell it today you would lose (133.00) from holding China Sports Industry or give up 14.93% 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. China Sports Industry
Performance |
| Timeline |
| Dymatic Chemicals |
| China Sports Industry |
Dymatic Chemicals and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and China Sports
The main advantage of trading using opposite Dymatic Chemicals and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' 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 |
| China Sports vs. Liaoning Dingjide Petrochemical | China Sports vs. Anhui Transport Consulting | China Sports vs. Maoming Petro Chemical Shihua | China Sports 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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