Correlation Between Guangzhou KingTeller and Dymatic Chemicals
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Dymatic Chemicals, you can compare the effects of market volatilities on Guangzhou KingTeller and Dymatic Chemicals 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 Guangzhou KingTeller with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Dymatic Chemicals.
Diversification Opportunities for Guangzhou KingTeller and Dymatic Chemicals
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Dymatic is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Guangzhou KingTeller 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 Guangzhou KingTeller Technology are associated (or correlated) with Dymatic Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dymatic Chemicals has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Dymatic Chemicals
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Dymatic Chemicals. In addition to that, Guangzhou KingTeller is 1.8 times more volatile than Dymatic Chemicals. It trades about -0.29 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.31 per unit of volatility. If you would invest 681.00 in Dymatic Chemicals on October 11, 2024 and sell it today you would lose (114.00) from holding Dymatic Chemicals or give up 16.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Dymatic Chemicals
Performance |
| Timeline |
| Guangzhou KingTeller |
| Dymatic Chemicals |
Guangzhou KingTeller and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Dymatic Chemicals
The main advantage of trading using opposite Guangzhou KingTeller and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Dymatic Chemicals 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 Dymatic Chemicals will offset losses from the drop in Dymatic Chemicals' long position.| Guangzhou KingTeller vs. Guangzhou Dongfang Hotel | Guangzhou KingTeller vs. TongFu Microelectronics Co | Guangzhou KingTeller vs. Anhui Deli Household | Guangzhou KingTeller vs. BTG Hotels Group |
| Dymatic Chemicals vs. Lecron Energy Saving | Dymatic Chemicals vs. Unisplendour Corp | Dymatic Chemicals vs. Ping An Insurance | Dymatic Chemicals vs. Xiamen Bank Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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