Correlation Between Dymatic Chemicals and Hainan Mining
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By analyzing existing cross correlation between Dymatic Chemicals and Hainan Mining Co, you can compare the effects of market volatilities on Dymatic Chemicals and Hainan 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Hainan Mining.
Diversification Opportunities for Dymatic Chemicals and Hainan Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Hainan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Hainan Mining go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Hainan Mining
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 1.57 times more return on investment than Hainan Mining. However, Dymatic Chemicals is 1.57 times more volatile than Hainan Mining Co. It trades about 0.07 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.02 per unit of risk. If you would invest 546.00 in Dymatic Chemicals on October 16, 2024 and sell it today you would earn a total of 46.00 from holding Dymatic Chemicals or generate 8.42% 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. Hainan Mining Co
Performance |
| Timeline |
| Dymatic Chemicals |
| Hainan Mining |
Dymatic Chemicals and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Hainan Mining
The main advantage of trading using opposite Dymatic Chemicals and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Hainan 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Dymatic Chemicals vs. Time Publishing and | Dymatic Chemicals vs. Epoxy Base Electronic | Dymatic Chemicals vs. Heilongjiang Publishing Media | Dymatic Chemicals vs. Anhui Shiny Electronic |
| Hainan Mining vs. Shanghai Sanyou Medical | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Dymatic Chemicals | Hainan Mining vs. Fiberhome Telecommunication Technologies |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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