Correlation Between Dymatic Chemicals and Xiamen Goldenhome
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By analyzing existing cross correlation between Dymatic Chemicals and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Dymatic Chemicals and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Xiamen Goldenhome.
Diversification Opportunities for Dymatic Chemicals and Xiamen Goldenhome
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Xiamen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Xiamen Goldenhome
Assuming the 90 days trading horizon Dymatic Chemicals is expected to under-perform the Xiamen Goldenhome. In addition to that, Dymatic Chemicals is 1.21 times more volatile than Xiamen Goldenhome Co. It trades about -0.33 of its total potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.39 per unit of volatility. If you would invest 2,227 in Xiamen Goldenhome Co on October 15, 2024 and sell it today you would lose (337.00) from holding Xiamen Goldenhome Co or give up 15.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Dymatic Chemicals |
| Xiamen Goldenhome |
Dymatic Chemicals and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dymatic Chemicals and Xiamen Goldenhome
The main advantage of trading using opposite Dymatic Chemicals and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome'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 |
| Xiamen Goldenhome vs. Shenyang Chemical Industry | Xiamen Goldenhome vs. Dymatic Chemicals | Xiamen Goldenhome vs. Wuxi Chemical Equipment | Xiamen Goldenhome vs. Guangzhou Jointas Chemical |
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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