Correlation Between Dymatic Chemicals and Yangmei Chemical
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By analyzing existing cross correlation between Dymatic Chemicals and Yangmei Chemical Co, you can compare the effects of market volatilities on Dymatic Chemicals and Yangmei Chemical 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 Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Yangmei Chemical.
Diversification Opportunities for Dymatic Chemicals and Yangmei Chemical
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Yangmei is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical 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 Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Yangmei Chemical
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 0.86 times more return on investment than Yangmei Chemical. However, Dymatic Chemicals is 1.16 times less risky than Yangmei Chemical. It trades about -0.01 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about -0.02 per unit of risk. If you would invest 765.00 in Dymatic Chemicals on November 2, 2024 and sell it today you would lose (165.00) from holding Dymatic Chemicals or give up 21.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Yangmei Chemical Co
Performance |
| Timeline |
| Dymatic Chemicals |
| Yangmei Chemical |
Dymatic Chemicals and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Yangmei Chemical
The main advantage of trading using opposite Dymatic Chemicals and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical'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 |
| Yangmei Chemical vs. Beijing Jiaman Dress | Yangmei Chemical vs. GRINM Semiconductor Materials | Yangmei Chemical vs. Zbit Semiconductor A | Yangmei Chemical vs. Union Semiconductor 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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