Correlation Between Hengli Petrochemical and Dymatic Chemicals
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By analyzing existing cross correlation between Hengli Petrochemical Co and Dymatic Chemicals, you can compare the effects of market volatilities on Hengli Petrochemical 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 Hengli Petrochemical with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Dymatic Chemicals.
Diversification Opportunities for Hengli Petrochemical and Dymatic Chemicals
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Dymatic is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Hengli Petrochemical 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 Hengli Petrochemical Co 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 Hengli Petrochemical i.e., Hengli Petrochemical and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Dymatic Chemicals
Assuming the 90 days trading horizon Hengli Petrochemical Co is expected to generate 0.75 times more return on investment than Dymatic Chemicals. However, Hengli Petrochemical Co is 1.33 times less risky than Dymatic Chemicals. It trades about -0.01 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.01 per unit of risk. If you would invest 1,712 in Hengli Petrochemical Co on October 15, 2024 and sell it today you would lose (227.00) from holding Hengli Petrochemical Co or give up 13.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Dymatic Chemicals
Performance |
| Timeline |
| Hengli Petrochemical |
| Dymatic Chemicals |
Hengli Petrochemical and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Dymatic Chemicals
The main advantage of trading using opposite Hengli Petrochemical and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical 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.| Hengli Petrochemical vs. Zijin Mining Group | Hengli Petrochemical vs. Wanhua Chemical Group | Hengli Petrochemical vs. Baoshan Iron Steel | Hengli Petrochemical vs. Shandong Gold Mining |
| Dymatic Chemicals vs. Guangzhou KDT Machinery | Dymatic Chemicals vs. Anhui Huilong Agricultural | Dymatic Chemicals vs. Sunwave Communications Co | Dymatic Chemicals vs. Huasi Agricultural Development |
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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