Correlation Between Dymatic Chemicals and Weichai Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dymatic Chemicals and Weichai Heavy Machinery, you can compare the effects of market volatilities on Dymatic Chemicals and Weichai Heavy 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 Dymatic Chemicals with a short position of Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Weichai Heavy.
Diversification Opportunities for Dymatic Chemicals and Weichai Heavy
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dymatic and Weichai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery and Dymatic Chemicals 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 Dymatic Chemicals are associated (or correlated) with Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Weichai Heavy go up and down completely randomly.
Pair Corralation between Dymatic Chemicals and Weichai Heavy
Assuming the 90 days trading horizon Dymatic Chemicals is expected to under-perform the Weichai Heavy. But the stock apears to be less risky and, when comparing its historical volatility, Dymatic Chemicals is 1.25 times less risky than Weichai Heavy. The stock trades about 0.0 of its potential returns per unit of risk. The Weichai Heavy Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 915.00 in Weichai Heavy Machinery on September 24, 2024 and sell it today you would earn a total of 394.00 from holding Weichai Heavy Machinery or generate 43.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dymatic Chemicals vs. Weichai Heavy Machinery
Performance |
Timeline |
Dymatic Chemicals |
Weichai Heavy Machinery |
Dymatic Chemicals and Weichai Heavy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dymatic Chemicals and Weichai Heavy
The main advantage of trading using opposite Dymatic Chemicals and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy's long position.Dymatic Chemicals vs. Zijin Mining Group | Dymatic Chemicals vs. Wanhua Chemical Group | Dymatic Chemicals vs. Baoshan Iron Steel | Dymatic Chemicals vs. Shandong Gold Mining |
Weichai Heavy vs. Offshore Oil Engineering | Weichai Heavy vs. Marssenger Kitchenware Co | Weichai Heavy vs. Chahua Modern Housewares | Weichai Heavy vs. Zhangjiagang Freetrade Science |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |