Correlation Between Dymatic Chemicals and Dow Jones
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By analyzing existing cross correlation between Dymatic Chemicals and Dow Jones Industrial, you can compare the effects of market volatilities on Dymatic Chemicals and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Dow Jones.
Diversification Opportunities for Dymatic Chemicals and Dow Jones
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Dow is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Dow Jones go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Dow Jones
Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 2.92 times more return on investment than Dow Jones. However, Dymatic Chemicals is 2.92 times more volatile than Dow Jones Industrial. It trades about 0.26 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of risk. If you would invest 539.00 in Dymatic Chemicals on August 25, 2024 and sell it today you would earn a total of 90.00 from holding Dymatic Chemicals or generate 16.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dymatic Chemicals vs. Dow Jones Industrial
Performance |
| Timeline |
Dymatic Chemicals and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Dymatic Chemicals
Pair trading matchups for Dymatic Chemicals
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Dymatic Chemicals and Dow Jones
The main advantage of trading using opposite Dymatic Chemicals and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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