Correlation Between Xinke Material and Dymatic Chemicals
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By analyzing existing cross correlation between Xinke Material and Dymatic Chemicals, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Dymatic Chemicals.
Diversification Opportunities for Xinke Material and Dymatic Chemicals
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinke and Dymatic is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Xinke Material and Dymatic Chemicals
Assuming the 90 days trading horizon Xinke Material is expected to generate 3.7 times less return on investment than Dymatic Chemicals. But when comparing it to its historical volatility, Xinke Material is 1.44 times less risky than Dymatic Chemicals. It trades about 0.15 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 560.00 in Dymatic Chemicals on August 29, 2024 and sell it today you would earn a total of 201.00 from holding Dymatic Chemicals or generate 35.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Dymatic Chemicals
Performance |
| Timeline |
| Xinke Material |
| Dymatic Chemicals |
Xinke Material and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Dymatic Chemicals
The main advantage of trading using opposite Xinke Material and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Shandong Gold Mining | Xinke Material vs. Rongsheng Petrochemical Co | Xinke Material vs. Inner Mongolia BaoTou |
| 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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