Correlation Between Dymatic Chemicals and Northern United
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By analyzing existing cross correlation between Dymatic Chemicals and Northern United Publishing, you can compare the effects of market volatilities on Dymatic Chemicals and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Northern United.
Diversification Opportunities for Dymatic Chemicals and Northern United
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dymatic and Northern is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Northern United go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Northern United
Assuming the 90 days trading horizon Dymatic Chemicals is expected to under-perform the Northern United. But the stock apears to be less risky and, when comparing its historical volatility, Dymatic Chemicals is 1.43 times less risky than Northern United. The stock trades about -0.01 of its potential returns per unit of risk. The Northern United Publishing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 593.00 in Northern United Publishing on September 2, 2024 and sell it today you would earn a total of 102.00 from holding Northern United Publishing or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Northern United Publishing
Performance |
| Timeline |
| Dymatic Chemicals |
| Northern United Publ |
Dymatic Chemicals and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Northern United
The main advantage of trading using opposite Dymatic Chemicals and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United'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 |
| Northern United vs. Cambricon Technologies Corp | Northern United vs. Loongson Technology Corp | Northern United vs. Shenzhen Fortune Trend | Northern United vs. Chongqing Road Bridge |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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