Correlation Between Acelon Chemicals and Hsinli Chemical
Can any of the company-specific risk be diversified away by investing in both Acelon Chemicals and Hsinli Chemical 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 Hsinli Chemical 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 Hsinli Chemical Industrial, you can compare the effects of market volatilities on Acelon Chemicals and Hsinli Chemical 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 Hsinli Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acelon Chemicals and Hsinli Chemical.
Diversification Opportunities for Acelon Chemicals and Hsinli Chemical
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acelon and Hsinli is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Acelon Chemicals Fiber and Hsinli Chemical Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsinli Chemical Indu 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 Hsinli Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsinli Chemical Indu has no effect on the direction of Acelon Chemicals i.e., Acelon Chemicals and Hsinli Chemical go up and down completely randomly.
Pair Corralation between Acelon Chemicals and Hsinli Chemical
Assuming the 90 days trading horizon Acelon Chemicals Fiber is expected to under-perform the Hsinli Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Acelon Chemicals Fiber is 1.12 times less risky than Hsinli Chemical. The stock trades about -0.23 of its potential returns per unit of risk. The Hsinli Chemical Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,820 in Hsinli Chemical Industrial on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Hsinli Chemical Industrial or generate 0.0% 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. Hsinli Chemical Industrial
Performance |
| Timeline |
| Acelon Chemicals Fiber |
| Hsinli Chemical Indu |
Acelon Chemicals and Hsinli Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acelon Chemicals and Hsinli Chemical
The main advantage of trading using opposite Acelon Chemicals and Hsinli Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acelon Chemicals position performs unexpectedly, Hsinli Chemical 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 Hsinli Chemical will offset losses from the drop in Hsinli Chemical'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 |
| Hsinli Chemical vs. Microelectronics Technology | Hsinli Chemical vs. Intai Technology | Hsinli Chemical vs. Pontex Polyblend CoLtd | Hsinli Chemical vs. Aker Technology Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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