Correlation Between Dymatic Chemicals and Sichuan Hebang
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By analyzing existing cross correlation between Dymatic Chemicals and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Dymatic Chemicals and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Sichuan Hebang.
Diversification Opportunities for Dymatic Chemicals and Sichuan Hebang
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dymatic and Sichuan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Sichuan Hebang
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 1.67 times more return on investment than Sichuan Hebang. However, Dymatic Chemicals is 1.67 times more volatile than Sichuan Hebang Biotechnology. It trades about -0.34 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.65 per unit of risk. If you would invest 671.00 in Dymatic Chemicals on October 14, 2024 and sell it today you would lose (109.00) from holding Dymatic Chemicals or give up 16.24% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Dymatic Chemicals |
| Sichuan Hebang Biote |
Dymatic Chemicals and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Sichuan Hebang
The main advantage of trading using opposite Dymatic Chemicals and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Dymatic Chemicals vs. Puya Semiconductor Shanghai | Dymatic Chemicals vs. Chongqing Brewery Co | Dymatic Chemicals vs. Guangzhou Zhujiang Brewery | Dymatic Chemicals vs. GRINM Semiconductor Materials |
| Sichuan Hebang vs. Dymatic Chemicals | Sichuan Hebang vs. JCHX Mining Management | Sichuan Hebang vs. Miracll Chemicals Co | Sichuan Hebang vs. Shenzhen Noposion Agrochemicals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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