Correlation Between Dynapack International and Xintec

Can any of the company-specific risk be diversified away by investing in both Dynapack International and Xintec 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 Dynapack International and Xintec into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dynapack International Technology and Xintec, you can compare the effects of market volatilities on Dynapack International and Xintec 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 Dynapack International with a short position of Xintec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynapack International and Xintec.

Diversification Opportunities for Dynapack International and Xintec

0.0

Correlation Coefficient

Dynapack International  Xintec

Pay attention - limited upside

The 3 months correlation between Dynapack and Xintec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dynapack International Technol and Xintec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintec and Dynapack International 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 Dynapack International Technology are associated (or correlated) with Xintec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintec has no effect on the direction of Dynapack International i.e., Dynapack International and Xintec go up and down completely randomly.

Pair Corralation between Dynapack International and Xintec

If you would invest  10,150  in Dynapack International Technology on October 9, 2024 and sell it today you would earn a total of  11,300  from holding Dynapack International Technology or generate 111.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dynapack International Technol  vs.  Xintec

Dynapack International

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dynapack International Technology are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Dynapack International showed solid returns over the last few months and may actually be approaching a breakup point.

Xintec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xintec has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Xintec is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Dynapack International and Xintec

The main advantage of trading using opposite Dynapack International and Xintec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynapack International position performs unexpectedly, Xintec 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 Xintec will offset losses from the drop in Xintec's long position.

The idea behind Dynapack International Technology and Xintec 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.