Correlation Between Dymatic Chemicals and Ningbo Construction
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By analyzing existing cross correlation between Dymatic Chemicals and Ningbo Construction Co, you can compare the effects of market volatilities on Dymatic Chemicals and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Ningbo Construction.
Diversification Opportunities for Dymatic Chemicals and Ningbo Construction
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Ningbo is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Ningbo Construction go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Ningbo Construction
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 0.98 times more return on investment than Ningbo Construction. However, Dymatic Chemicals is 1.02 times less risky than Ningbo Construction. It trades about 0.04 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.0 per unit of risk. If you would invest 560.00 in Dymatic Chemicals on October 26, 2024 and sell it today you would earn a total of 33.00 from holding Dymatic Chemicals or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Ningbo Construction Co
Performance |
| Timeline |
| Dymatic Chemicals |
| Ningbo Construction |
Dymatic Chemicals and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Ningbo Construction
The main advantage of trading using opposite Dymatic Chemicals and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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