Correlation Between Dymatic Chemicals and Changchun Engley
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By analyzing existing cross correlation between Dymatic Chemicals and Changchun Engley Automobile, you can compare the effects of market volatilities on Dymatic Chemicals and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Changchun Engley.
Diversification Opportunities for Dymatic Chemicals and Changchun Engley
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Changchun is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Changchun Engley go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Changchun Engley
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 1.61 times more return on investment than Changchun Engley. However, Dymatic Chemicals is 1.61 times more volatile than Changchun Engley Automobile. It trades about 0.02 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.19 per unit of risk. If you would invest 575.00 in Dymatic Chemicals on October 11, 2024 and sell it today you would lose (3.00) from holding Dymatic Chemicals or give up 0.52% 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. Changchun Engley Automobile
Performance |
| Timeline |
| Dymatic Chemicals |
| Changchun Engley Aut |
Dymatic Chemicals and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Changchun Engley
The main advantage of trading using opposite Dymatic Chemicals and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley'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 |
| Changchun Engley vs. Nantong Haixing Electronics | Changchun Engley vs. Miracll Chemicals Co | Changchun Engley vs. Shijiazhuang Tonhe Electronics | Changchun Engley 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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