Correlation Between Guizhou Chanhen and Dymatic Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guizhou Chanhen Chemical and Dymatic Chemicals, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Dymatic Chemicals.
Diversification Opportunities for Guizhou Chanhen and Dymatic Chemicals
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guizhou and Dymatic is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Dymatic Chemicals
Assuming the 90 days trading horizon Guizhou Chanhen is expected to generate 369.14 times less return on investment than Dymatic Chemicals. But when comparing it to its historical volatility, Guizhou Chanhen Chemical is 1.26 times less risky than Dymatic Chemicals. It trades about 0.0 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 560.00 in Dymatic Chemicals on August 28, 2024 and sell it today you would earn a total of 132.00 from holding Dymatic Chemicals or generate 23.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Dymatic Chemicals
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Dymatic Chemicals |
Guizhou Chanhen and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Dymatic Chemicals
The main advantage of trading using opposite Guizhou Chanhen and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Zijin Mining Group | Guizhou Chanhen vs. Wanhua Chemical Group | Guizhou Chanhen vs. Baoshan Iron Steel | Guizhou Chanhen vs. Shandong Gold Mining |
| Dymatic Chemicals vs. Zijin Mining Group | Dymatic Chemicals vs. Wanhua Chemical Group | Dymatic Chemicals vs. Baoshan Iron Steel | Dymatic Chemicals vs. Shandong Gold Mining |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |