Correlation Between Shandong Rike and Dymatic Chemicals
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By analyzing existing cross correlation between Shandong Rike Chemical and Dymatic Chemicals, you can compare the effects of market volatilities on Shandong Rike 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 Rike with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Rike and Dymatic Chemicals.
Diversification Opportunities for Shandong Rike and Dymatic Chemicals
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Dymatic is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Rike Chemical and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Shandong Rike 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 Rike 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 Shandong Rike i.e., Shandong Rike and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Shandong Rike and Dymatic Chemicals
Assuming the 90 days trading horizon Shandong Rike Chemical is expected to generate 1.14 times more return on investment than Dymatic Chemicals. However, Shandong Rike is 1.14 times more volatile than Dymatic Chemicals. It trades about 0.0 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.01 per unit of risk. If you would invest 696.00 in Shandong Rike Chemical on November 2, 2024 and sell it today you would lose (133.00) from holding Shandong Rike Chemical or give up 19.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Rike Chemical vs. Dymatic Chemicals
Performance |
| Timeline |
| Shandong Rike Chemical |
| Dymatic Chemicals |
Shandong Rike and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Rike and Dymatic Chemicals
The main advantage of trading using opposite Shandong Rike and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Rike 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 Rike vs. Zhengping RoadBridge Constr | Shandong Rike vs. Chengdu Xinzhu RoadBridge | Shandong Rike vs. Chengtun Mining Group | Shandong Rike vs. Zhengzhou Coal 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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