Correlation Between Acelon Chemicals and I Hwa
Can any of the company-specific risk be diversified away by investing in both Acelon Chemicals and I Hwa 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 Acelon Chemicals and I Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acelon Chemicals Fiber and I Hwa Industrial Co, you can compare the effects of market volatilities on Acelon Chemicals and I Hwa 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 Acelon Chemicals with a short position of I Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acelon Chemicals and I Hwa.
Diversification Opportunities for Acelon Chemicals and I Hwa
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acelon and 1456 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Acelon Chemicals Fiber and I Hwa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Hwa Industrial and Acelon 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 Acelon Chemicals Fiber are associated (or correlated) with I Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Hwa Industrial has no effect on the direction of Acelon Chemicals i.e., Acelon Chemicals and I Hwa go up and down completely randomly.
Pair Corralation between Acelon Chemicals and I Hwa
Assuming the 90 days trading horizon Acelon Chemicals Fiber is expected to generate 0.87 times more return on investment than I Hwa. However, Acelon Chemicals Fiber is 1.14 times less risky than I Hwa. It trades about 0.04 of its potential returns per unit of risk. I Hwa Industrial Co is currently generating about 0.02 per unit of risk. If you would invest 1,130 in Acelon Chemicals Fiber on September 2, 2024 and sell it today you would earn a total of 265.00 from holding Acelon Chemicals Fiber or generate 23.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acelon Chemicals Fiber vs. I Hwa Industrial Co
Performance |
| Timeline |
| Acelon Chemicals Fiber |
| I Hwa Industrial |
Acelon Chemicals and I Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acelon Chemicals and I Hwa
The main advantage of trading using opposite Acelon Chemicals and I Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acelon Chemicals position performs unexpectedly, I Hwa 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 I Hwa will offset losses from the drop in I Hwa's long position.| Acelon Chemicals vs. Chaintech Technology Corp | Acelon Chemicals vs. Avision | Acelon Chemicals vs. Clevo Co | Acelon Chemicals vs. Elitegroup Computer Systems |
| I Hwa vs. Chaintech Technology Corp | I Hwa vs. Avision | I Hwa vs. Clevo Co | I Hwa vs. Elitegroup Computer Systems |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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