Correlation Between Acelon Chemicals and BenQ Medical
Can any of the company-specific risk be diversified away by investing in both Acelon Chemicals and BenQ Medical 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 BenQ Medical 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 BenQ Medical Technology, you can compare the effects of market volatilities on Acelon Chemicals and BenQ Medical 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 BenQ Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acelon Chemicals and BenQ Medical.
Diversification Opportunities for Acelon Chemicals and BenQ Medical
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acelon and BenQ is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Acelon Chemicals Fiber and BenQ Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Medical Technology 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 BenQ Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Medical Technology has no effect on the direction of Acelon Chemicals i.e., Acelon Chemicals and BenQ Medical go up and down completely randomly.
Pair Corralation between Acelon Chemicals and BenQ Medical
Assuming the 90 days trading horizon Acelon Chemicals Fiber is expected to generate 1.24 times more return on investment than BenQ Medical. However, Acelon Chemicals is 1.24 times more volatile than BenQ Medical Technology. It trades about 0.01 of its potential returns per unit of risk. BenQ Medical Technology is currently generating about -0.03 per unit of risk. If you would invest 1,160 in Acelon Chemicals Fiber on October 11, 2024 and sell it today you would earn a total of 50.00 from holding Acelon Chemicals Fiber or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acelon Chemicals Fiber vs. BenQ Medical Technology
Performance |
| Timeline |
| Acelon Chemicals Fiber |
| BenQ Medical Technology |
Acelon Chemicals and BenQ Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acelon Chemicals and BenQ Medical
The main advantage of trading using opposite Acelon Chemicals and BenQ Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acelon Chemicals position performs unexpectedly, BenQ Medical 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 BenQ Medical will offset losses from the drop in BenQ Medical's 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 |
| BenQ Medical vs. Evermore Chemical Industry | BenQ Medical vs. Acelon Chemicals Fiber | BenQ Medical vs. Shinkong Synthetic Fiber | BenQ Medical vs. Gloria Material Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |