Correlation Between Guotai Epoint and Dymatic Chemicals
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By analyzing existing cross correlation between Guotai Epoint Software and Dymatic Chemicals, you can compare the effects of market volatilities on Guotai Epoint 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 Guotai Epoint with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Dymatic Chemicals.
Diversification Opportunities for Guotai Epoint and Dymatic Chemicals
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guotai and Dymatic is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Guotai Epoint 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 Guotai Epoint Software 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 Guotai Epoint i.e., Guotai Epoint and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Guotai Epoint and Dymatic Chemicals
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the Dymatic Chemicals. In addition to that, Guotai Epoint is 1.04 times more volatile than Dymatic Chemicals. It trades about -0.19 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 602.00 in Dymatic Chemicals on October 25, 2024 and sell it today you would lose (5.00) from holding Dymatic Chemicals or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Dymatic Chemicals
Performance |
| Timeline |
| Guotai Epoint Software |
| Dymatic Chemicals |
Guotai Epoint and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Dymatic Chemicals
The main advantage of trading using opposite Guotai Epoint and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint 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.| Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. NAURA Technology Group | Guotai Epoint vs. APT Medical | Guotai Epoint vs. BYD Co Ltd |
| Dymatic Chemicals vs. Guangdong Silvere Sci | Dymatic Chemicals vs. Pengxin International Mining | Dymatic Chemicals vs. Ligao Foods CoLtd | Dymatic Chemicals vs. Easyhome New Retail |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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