Correlation Between Epoxy Base and Dymatic Chemicals
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By analyzing existing cross correlation between Epoxy Base Electronic and Dymatic Chemicals, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Dymatic Chemicals.
Diversification Opportunities for Epoxy Base and Dymatic Chemicals
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Epoxy and Dymatic is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Epoxy Base and Dymatic Chemicals
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to under-perform the Dymatic Chemicals. In addition to that, Epoxy Base is 2.03 times more volatile than Dymatic Chemicals. It trades about -0.04 of its total potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.03 per unit of volatility. If you would invest 596.00 in Dymatic Chemicals on October 30, 2024 and sell it today you would earn a total of 4.00 from holding Dymatic Chemicals or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Dymatic Chemicals
Performance |
| Timeline |
| Epoxy Base Electronic |
| Dymatic Chemicals |
Epoxy Base and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Dymatic Chemicals
The main advantage of trading using opposite Epoxy Base and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Shengda Mining Co | Epoxy Base vs. Chengtun Mining Group | Epoxy Base vs. Rising Nonferrous Metals | Epoxy Base vs. Hefei Metalforming Mach |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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