Correlation Between Hubei Tech and Dymatic Chemicals
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By analyzing existing cross correlation between Hubei Tech Semiconductors and Dymatic Chemicals, you can compare the effects of market volatilities on Hubei Tech 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 Hubei Tech with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Tech and Dymatic Chemicals.
Diversification Opportunities for Hubei Tech and Dymatic Chemicals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hubei and Dymatic is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Tech Semiconductors and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Hubei Tech 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 Hubei Tech Semiconductors 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 Hubei Tech i.e., Hubei Tech and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Hubei Tech and Dymatic Chemicals
Assuming the 90 days trading horizon Hubei Tech is expected to generate 2.92 times less return on investment than Dymatic Chemicals. In addition to that, Hubei Tech is 1.94 times more volatile than Dymatic Chemicals. It trades about 0.05 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.28 per unit of volatility. If you would invest 558.00 in Dymatic Chemicals on November 5, 2024 and sell it today you would earn a total of 42.00 from holding Dymatic Chemicals or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Tech Semiconductors vs. Dymatic Chemicals
Performance |
| Timeline |
| Hubei Tech Semiconductors |
| Dymatic Chemicals |
Hubei Tech and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Tech and Dymatic Chemicals
The main advantage of trading using opposite Hubei Tech and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Tech 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.| Hubei Tech vs. Baoshan Iron Steel | Hubei Tech vs. Bengang Steel Plates | Hubei Tech vs. Citic Guoan Wine | Hubei Tech vs. Jilin OLED Material |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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