Correlation Between Beijing Enlight and Dymatic Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Enlight Media and Dymatic Chemicals, you can compare the effects of market volatilities on Beijing Enlight 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 Beijing Enlight with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Dymatic Chemicals.
Diversification Opportunities for Beijing Enlight and Dymatic Chemicals
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Dymatic is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Beijing Enlight 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 Beijing Enlight Media 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 Beijing Enlight i.e., Beijing Enlight and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Beijing Enlight and Dymatic Chemicals
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 0.85 times more return on investment than Dymatic Chemicals. However, Beijing Enlight Media is 1.18 times less risky than Dymatic Chemicals. It trades about -0.33 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.34 per unit of risk. If you would invest 979.00 in Beijing Enlight Media on October 14, 2024 and sell it today you would lose (132.00) from holding Beijing Enlight Media or give up 13.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Dymatic Chemicals
Performance |
| Timeline |
| Beijing Enlight Media |
| Dymatic Chemicals |
Beijing Enlight and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Dymatic Chemicals
The main advantage of trading using opposite Beijing Enlight and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight 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.| Beijing Enlight vs. Xiamen Bank Co | Beijing Enlight vs. Zhejiang Construction Investment | Beijing Enlight vs. HeNan Splendor Science | Beijing Enlight vs. Lecron Energy Saving |
| Dymatic Chemicals vs. Puya Semiconductor Shanghai | Dymatic Chemicals vs. Chongqing Brewery Co | Dymatic Chemicals vs. Guangzhou Zhujiang Brewery | Dymatic Chemicals vs. GRINM Semiconductor Materials |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |