Correlation Between Shandong Longda and Dymatic Chemicals
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By analyzing existing cross correlation between Shandong Longda Meat and Dymatic Chemicals, you can compare the effects of market volatilities on Shandong Longda 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 Shandong Longda with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longda and Dymatic Chemicals.
Diversification Opportunities for Shandong Longda and Dymatic Chemicals
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shandong and Dymatic is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longda Meat and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Shandong Longda 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 Shandong Longda Meat 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 Shandong Longda i.e., Shandong Longda and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Shandong Longda and Dymatic Chemicals
Assuming the 90 days trading horizon Shandong Longda Meat is expected to under-perform the Dymatic Chemicals. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Longda Meat is 1.82 times less risky than Dymatic Chemicals. The stock trades about -0.03 of its potential returns per unit of risk. The Dymatic Chemicals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Dymatic Chemicals on October 12, 2024 and sell it today you would lose (3.00) from holding Dymatic Chemicals or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longda Meat vs. Dymatic Chemicals
Performance |
| Timeline |
| Shandong Longda Meat |
| Dymatic Chemicals |
Shandong Longda and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longda and Dymatic Chemicals
The main advantage of trading using opposite Shandong Longda and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longda 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.| Shandong Longda vs. Dymatic Chemicals | Shandong Longda vs. Jiangsu Jinling Sports | Shandong Longda vs. Harvest Fund Management | Shandong Longda vs. Yingde Greatchem Chemicals |
| Dymatic Chemicals vs. Guangdong Wens Foodstuff | Dymatic Chemicals vs. Guilin Seamild Foods | Dymatic Chemicals vs. Youyou Foods Co | Dymatic Chemicals vs. Fujian Anjoy Foods |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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