Correlation Between Dymatic Chemicals and Zijin Mining
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By analyzing existing cross correlation between Dymatic Chemicals and Zijin Mining Group, you can compare the effects of market volatilities on Dymatic Chemicals and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Zijin Mining.
Diversification Opportunities for Dymatic Chemicals and Zijin Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Zijin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Zijin Mining go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Zijin Mining
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 2.25 times more return on investment than Zijin Mining. However, Dymatic Chemicals is 2.25 times more volatile than Zijin Mining Group. It trades about 0.37 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.25 per unit of risk. If you would invest 560.00 in Dymatic Chemicals on August 29, 2024 and sell it today you would earn a total of 201.00 from holding Dymatic Chemicals or generate 35.89% 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. Zijin Mining Group
Performance |
| Timeline |
| Dymatic Chemicals |
| Zijin Mining Group |
Dymatic Chemicals and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Zijin Mining
The main advantage of trading using opposite Dymatic Chemicals and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining'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 |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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