Correlation Between Sichuan Fulin and Dymatic Chemicals
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Dymatic Chemicals, you can compare the effects of market volatilities on Sichuan Fulin 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 Sichuan Fulin with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Dymatic Chemicals.
Diversification Opportunities for Sichuan Fulin and Dymatic Chemicals
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Dymatic is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Sichuan Fulin 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 Sichuan Fulin Transportation 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 Sichuan Fulin i.e., Sichuan Fulin and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Dymatic Chemicals
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.81 times more return on investment than Dymatic Chemicals. However, Sichuan Fulin Transportation is 1.23 times less risky than Dymatic Chemicals. It trades about 0.08 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.32 per unit of risk. If you would invest 696.00 in Sichuan Fulin Transportation on September 27, 2024 and sell it today you would earn a total of 30.00 from holding Sichuan Fulin Transportation or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Dymatic Chemicals
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Dymatic Chemicals |
Sichuan Fulin and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Dymatic Chemicals
The main advantage of trading using opposite Sichuan Fulin and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin 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.| Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. Shenzhen Mindray Bio Medical | Sichuan Fulin vs. Jiangsu Pacific Quartz | Sichuan Fulin vs. G bits Network Technology |
| Dymatic Chemicals vs. Heilongjiang Publishing Media | Dymatic Chemicals vs. Will Semiconductor Co | Dymatic Chemicals vs. Guangdong Jinma Entertainment | Dymatic Chemicals vs. Hengkang Medical Group |
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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