Correlation Between Hengkang Medical and Dymatic Chemicals
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By analyzing existing cross correlation between Hengkang Medical Group and Dymatic Chemicals, you can compare the effects of market volatilities on Hengkang Medical 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 Hengkang Medical with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Dymatic Chemicals.
Diversification Opportunities for Hengkang Medical and Dymatic Chemicals
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengkang and Dymatic is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Hengkang Medical 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 Hengkang Medical Group 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 Hengkang Medical i.e., Hengkang Medical and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Hengkang Medical and Dymatic Chemicals
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 4.84 times less return on investment than Dymatic Chemicals. In addition to that, Hengkang Medical is 1.17 times more volatile than Dymatic Chemicals. It trades about 0.01 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.06 per unit of volatility. If you would invest 512.00 in Dymatic Chemicals on October 15, 2024 and sell it today you would earn a total of 50.00 from holding Dymatic Chemicals or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Dymatic Chemicals
Performance |
| Timeline |
| Hengkang Medical |
| Dymatic Chemicals |
Hengkang Medical and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Dymatic Chemicals
The main advantage of trading using opposite Hengkang Medical and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical 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.| Hengkang Medical vs. HeBei Jinniu Chemical | Hengkang Medical vs. Dymatic Chemicals | Hengkang Medical vs. Wuxi Chemical Equipment | Hengkang Medical vs. China Life Insurance |
| Dymatic Chemicals vs. Guangzhou KDT Machinery | Dymatic Chemicals vs. Anhui Huilong Agricultural | Dymatic Chemicals vs. Sunwave Communications Co | Dymatic Chemicals vs. Huasi Agricultural Development |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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