Correlation Between Northern United and Dymatic Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Northern United Publishing and Dymatic Chemicals, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Dymatic Chemicals.
Diversification Opportunities for Northern United and Dymatic Chemicals
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northern and Dymatic is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Northern United and Dymatic Chemicals
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.43 times more return on investment than Dymatic Chemicals. However, Northern United is 1.43 times more volatile than Dymatic Chemicals. It trades about 0.03 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.01 per unit of risk. If you would invest 593.00 in Northern United Publishing on September 2, 2024 and sell it today you would earn a total of 102.00 from holding Northern United Publishing or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Dymatic Chemicals
Performance |
| Timeline |
| Northern United Publ |
| Dymatic Chemicals |
Northern United and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Dymatic Chemicals
The main advantage of trading using opposite Northern United and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Cambricon Technologies Corp | Northern United vs. Loongson Technology Corp | Northern United vs. Shenzhen Fortune Trend | Northern United vs. Chongqing Road Bridge |
| 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.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |