Correlation Between Dymatic Chemicals and Suzhou Oriental

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Can any of the company-specific risk be diversified away by investing in both Dymatic Chemicals and Suzhou Oriental at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dymatic Chemicals and Suzhou Oriental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dymatic Chemicals and Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Dymatic Chemicals and Suzhou Oriental 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 Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dymatic Chemicals and Suzhou Oriental.

Diversification Opportunities for Dymatic Chemicals and Suzhou Oriental

DymaticSuzhouDiversified AwayDymaticSuzhouDiversified Away100%
0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Dymatic and Suzhou is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dymatic Chemicals and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi 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 Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Dymatic Chemicals i.e., Dymatic Chemicals and Suzhou Oriental go up and down completely randomly.

Pair Corralation between Dymatic Chemicals and Suzhou Oriental

Assuming the 90 days trading horizon Dymatic Chemicals is expected to generate 1.13 times more return on investment than Suzhou Oriental. However, Dymatic Chemicals is 1.13 times more volatile than Suzhou Oriental Semiconductor. It trades about 0.06 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about -0.11 per unit of risk. If you would invest  552.00  in Dymatic Chemicals on October 31, 2024 and sell it today you would earn a total of  48.00  from holding Dymatic Chemicals or generate 8.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Dymatic Chemicals  vs.  Suzhou Oriental Semiconductor

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-100102030
JavaScript chart by amCharts 3.21.15002054 688261
       Timeline  
Dymatic Chemicals 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Dymatic Chemicals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Dymatic Chemicals may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanJan5.566.577.5
Suzhou Oriental Semi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Suzhou Oriental Semiconductor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanJan4045505560

Dymatic Chemicals and Suzhou Oriental Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.8-8.09-5.38-2.67-0.04522.745.538.3111.1 0.0150.0200.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15002054 688261
       Returns  

Pair Trading with Dymatic Chemicals and Suzhou Oriental

The main advantage of trading using opposite Dymatic Chemicals and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dymatic Chemicals position performs unexpectedly, Suzhou Oriental 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 Suzhou Oriental will offset losses from the drop in Suzhou Oriental's long position.
The idea behind Dymatic Chemicals and Suzhou Oriental Semiconductor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Valuation module to check real value of public entities based on technical and fundamental data.

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