Correlation Between Anhui Huilong and Dymatic Chemicals
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Dymatic Chemicals, you can compare the effects of market volatilities on Anhui Huilong 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 Anhui Huilong with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Dymatic Chemicals.
Diversification Opportunities for Anhui Huilong and Dymatic Chemicals
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Dymatic is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Anhui Huilong 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 Anhui Huilong Agricultural 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 Anhui Huilong i.e., Anhui Huilong and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Anhui Huilong and Dymatic Chemicals
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Dymatic Chemicals. In addition to that, Anhui Huilong is 1.01 times more volatile than Dymatic Chemicals. It trades about -0.03 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.01 per unit of volatility. If you would invest 746.00 in Dymatic Chemicals on October 16, 2024 and sell it today you would lose (181.00) from holding Dymatic Chemicals or give up 24.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Dymatic Chemicals
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Dymatic Chemicals |
Anhui Huilong and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Dymatic Chemicals
The main advantage of trading using opposite Anhui Huilong and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong 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.| Anhui Huilong vs. Gansu Huangtai Wine marketing | Anhui Huilong vs. PKU HealthCare Corp | Anhui Huilong vs. Shandong Sinoglory Health | Anhui Huilong vs. Sanbo Hospital Management |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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