Correlation Between Zhongtong Guomai and Dymatic Chemicals
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Dymatic Chemicals, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Dymatic Chemicals.
Diversification Opportunities for Zhongtong Guomai and Dymatic Chemicals
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Dymatic is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Dymatic Chemicals
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.43 times more return on investment than Dymatic Chemicals. However, Zhongtong Guomai is 1.43 times more volatile than Dymatic Chemicals. It trades about 0.02 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about 0.01 per unit of risk. If you would invest 1,149 in Zhongtong Guomai Communication on September 13, 2024 and sell it today you would lose (4.00) from holding Zhongtong Guomai Communication or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Dymatic Chemicals
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Dymatic Chemicals |
Zhongtong Guomai and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Dymatic Chemicals
The main advantage of trading using opposite Zhongtong Guomai and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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