Correlation Between Yangmei Chemical and Dymatic Chemicals
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By analyzing existing cross correlation between Yangmei Chemical Co and Dymatic Chemicals, you can compare the effects of market volatilities on Yangmei Chemical 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 Yangmei Chemical with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Dymatic Chemicals.
Diversification Opportunities for Yangmei Chemical and Dymatic Chemicals
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yangmei and Dymatic is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Yangmei Chemical 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 Yangmei Chemical 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 Yangmei Chemical i.e., Yangmei Chemical and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Dymatic Chemicals
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Dymatic Chemicals. In addition to that, Yangmei Chemical is 1.16 times more volatile than Dymatic Chemicals. It trades about -0.02 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.01 per unit of volatility. If you would invest 765.00 in Dymatic Chemicals on November 2, 2024 and sell it today you would lose (165.00) from holding Dymatic Chemicals or give up 21.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Dymatic Chemicals
Performance |
| Timeline |
| Yangmei Chemical |
| Dymatic Chemicals |
Yangmei Chemical and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Dymatic Chemicals
The main advantage of trading using opposite Yangmei Chemical and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical 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.| Yangmei Chemical vs. Beijing Jiaman Dress | Yangmei Chemical vs. GRINM Semiconductor Materials | Yangmei Chemical vs. Zbit Semiconductor A | Yangmei Chemical vs. Union Semiconductor 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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