Correlation Between Acelon Chemicals and Ablerex Electronics
Can any of the company-specific risk be diversified away by investing in both Acelon Chemicals and Ablerex Electronics 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 Ablerex Electronics 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 Ablerex Electronics Co, you can compare the effects of market volatilities on Acelon Chemicals and Ablerex Electronics 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 Ablerex Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acelon Chemicals and Ablerex Electronics.
Diversification Opportunities for Acelon Chemicals and Ablerex Electronics
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acelon and Ablerex is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Acelon Chemicals Fiber and Ablerex Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ablerex Electronics 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 Ablerex Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ablerex Electronics has no effect on the direction of Acelon Chemicals i.e., Acelon Chemicals and Ablerex Electronics go up and down completely randomly.
Pair Corralation between Acelon Chemicals and Ablerex Electronics
Assuming the 90 days trading horizon Acelon Chemicals Fiber is expected to under-perform the Ablerex Electronics. In addition to that, Acelon Chemicals is 1.1 times more volatile than Ablerex Electronics Co. It trades about -0.04 of its total potential returns per unit of risk. Ablerex Electronics Co is currently generating about 0.05 per unit of volatility. If you would invest 4,150 in Ablerex Electronics Co on October 26, 2024 and sell it today you would earn a total of 255.00 from holding Ablerex Electronics Co or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acelon Chemicals Fiber vs. Ablerex Electronics Co
Performance |
| Timeline |
| Acelon Chemicals Fiber |
| Ablerex Electronics |
Acelon Chemicals and Ablerex Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acelon Chemicals and Ablerex Electronics
The main advantage of trading using opposite Acelon Chemicals and Ablerex Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acelon Chemicals position performs unexpectedly, Ablerex Electronics 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 Ablerex Electronics will offset losses from the drop in Ablerex Electronics' long position.| Acelon Chemicals vs. Honmyue Enterprise Co | Acelon Chemicals vs. Tainan Spinning Co | Acelon Chemicals vs. Chia Her Industrial | Acelon Chemicals vs. Zig Sheng Industrial |
| Ablerex Electronics vs. Galaxy Software Services | Ablerex Electronics vs. Wei Chuan Foods | Ablerex Electronics vs. Acelon Chemicals Fiber | Ablerex Electronics vs. Johnson Health Tech |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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