Correlation Between Acelon Chemicals and Intech Biopharm
Can any of the company-specific risk be diversified away by investing in both Acelon Chemicals and Intech Biopharm 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 Intech Biopharm 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 Intech Biopharm, you can compare the effects of market volatilities on Acelon Chemicals and Intech Biopharm 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 Intech Biopharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acelon Chemicals and Intech Biopharm.
Diversification Opportunities for Acelon Chemicals and Intech Biopharm
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Acelon and Intech is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Acelon Chemicals Fiber and Intech Biopharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Biopharm 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 Intech Biopharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Biopharm has no effect on the direction of Acelon Chemicals i.e., Acelon Chemicals and Intech Biopharm go up and down completely randomly.
Pair Corralation between Acelon Chemicals and Intech Biopharm
Assuming the 90 days trading horizon Acelon Chemicals Fiber is expected to generate 0.83 times more return on investment than Intech Biopharm. However, Acelon Chemicals Fiber is 1.21 times less risky than Intech Biopharm. It trades about 0.03 of its potential returns per unit of risk. Intech Biopharm is currently generating about -0.01 per unit of risk. If you would invest 1,180 in Acelon Chemicals Fiber on September 3, 2024 and sell it today you would earn a total of 215.00 from holding Acelon Chemicals Fiber or generate 18.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acelon Chemicals Fiber vs. Intech Biopharm
Performance |
| Timeline |
| Acelon Chemicals Fiber |
| Intech Biopharm |
Acelon Chemicals and Intech Biopharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acelon Chemicals and Intech Biopharm
The main advantage of trading using opposite Acelon Chemicals and Intech Biopharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acelon Chemicals position performs unexpectedly, Intech Biopharm 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 Intech Biopharm will offset losses from the drop in Intech Biopharm's long position.| Acelon Chemicals vs. Tainan Spinning Co | Acelon Chemicals vs. Chia Her Industrial | Acelon Chemicals vs. WiseChip Semiconductor | Acelon Chemicals vs. Novatek Microelectronics Corp |
| Intech Biopharm vs. Compal Electronics | Intech Biopharm vs. Acelon Chemicals Fiber | Intech Biopharm vs. Oceanic Beverages Co | Intech Biopharm vs. Formosa Chemicals Fibre |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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