Correlation Between Guangdong Jinma and Dymatic Chemicals
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Dymatic Chemicals, you can compare the effects of market volatilities on Guangdong Jinma 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 Guangdong Jinma with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Dymatic Chemicals.
Diversification Opportunities for Guangdong Jinma and Dymatic Chemicals
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Dymatic is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Guangdong Jinma 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 Guangdong Jinma Entertainment 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 Guangdong Jinma i.e., Guangdong Jinma and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Dymatic Chemicals
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 0.76 times more return on investment than Dymatic Chemicals. However, Guangdong Jinma Entertainment is 1.31 times less risky than Dymatic Chemicals. It trades about -0.11 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.22 per unit of risk. If you would invest 1,654 in Guangdong Jinma Entertainment on September 28, 2024 and sell it today you would lose (104.00) from holding Guangdong Jinma Entertainment or give up 6.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Dymatic Chemicals
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Dymatic Chemicals |
Guangdong Jinma and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Dymatic Chemicals
The main advantage of trading using opposite Guangdong Jinma and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma 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.| Guangdong Jinma vs. Ningbo Jianan Electronics | Guangdong Jinma vs. Eastroc Beverage Group | Guangdong Jinma vs. Guangzhou Zhujiang Brewery | Guangdong Jinma vs. Do Fluoride Chemicals Co |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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