Correlation Between Tianjin Hi and Dymatic Chemicals
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Dymatic Chemicals, you can compare the effects of market volatilities on Tianjin Hi 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 Tianjin Hi with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Dymatic Chemicals.
Diversification Opportunities for Tianjin Hi and Dymatic Chemicals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Dymatic is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Tianjin Hi 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 Tianjin Hi Tech Development 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 Tianjin Hi i.e., Tianjin Hi and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Tianjin Hi and Dymatic Chemicals
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to under-perform the Dymatic Chemicals. In addition to that, Tianjin Hi is 1.01 times more volatile than Dymatic Chemicals. It trades about -0.01 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.04 per unit of volatility. If you would invest 560.00 in Dymatic Chemicals on October 26, 2024 and sell it today you would earn a total of 33.00 from holding Dymatic Chemicals or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Dymatic Chemicals
Performance |
| Timeline |
| Tianjin Hi Tech |
| Dymatic Chemicals |
Tianjin Hi and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Dymatic Chemicals
The main advantage of trading using opposite Tianjin Hi and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi 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.| Tianjin Hi vs. Beijing Mainstreets Investment | Tianjin Hi vs. Shandong Polymer Biochemicals | Tianjin Hi vs. Zhongrun Resources Investment | Tianjin Hi vs. Shenzhen Noposion Agrochemicals |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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