Correlation Between Xinjiang Communications and Dymatic Chemicals
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By analyzing existing cross correlation between Xinjiang Communications Construction and Dymatic Chemicals, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Dymatic Chemicals.
Diversification Opportunities for Xinjiang Communications and Dymatic Chemicals
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Dymatic is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Dymatic Chemicals
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.36 times more return on investment than Dymatic Chemicals. However, Xinjiang Communications is 1.36 times more volatile than Dymatic Chemicals. It trades about 0.02 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.01 per unit of risk. If you would invest 1,210 in Xinjiang Communications Construction on September 13, 2024 and sell it today you would earn a total of 98.00 from holding Xinjiang Communications Construction or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Dymatic Chemicals
Performance |
| Timeline |
| Xinjiang Communications |
| Dymatic Chemicals |
Xinjiang Communications and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Dymatic Chemicals
The main advantage of trading using opposite Xinjiang Communications and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Kweichow Moutai Co | Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. China Mobile Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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