Correlation Between Aces Electronics and Chant Sincere
Can any of the company-specific risk be diversified away by investing in both Aces Electronics and Chant Sincere 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 Aces Electronics and Chant Sincere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aces Electronics Co and Chant Sincere Co, you can compare the effects of market volatilities on Aces Electronics and Chant Sincere 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 Aces Electronics with a short position of Chant Sincere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aces Electronics and Chant Sincere.
Diversification Opportunities for Aces Electronics and Chant Sincere
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aces and Chant is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aces Electronics Co and Chant Sincere Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chant Sincere and Aces Electronics 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 Aces Electronics Co are associated (or correlated) with Chant Sincere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chant Sincere has no effect on the direction of Aces Electronics i.e., Aces Electronics and Chant Sincere go up and down completely randomly.
Pair Corralation between Aces Electronics and Chant Sincere
Assuming the 90 days trading horizon Aces Electronics Co is expected to under-perform the Chant Sincere. But the stock apears to be less risky and, when comparing its historical volatility, Aces Electronics Co is 2.09 times less risky than Chant Sincere. The stock trades about -0.32 of its potential returns per unit of risk. The Chant Sincere Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 7,290 in Chant Sincere Co on October 12, 2024 and sell it today you would lose (90.00) from holding Chant Sincere Co or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aces Electronics Co vs. Chant Sincere Co
Performance |
| Timeline |
| Aces Electronics |
| Chant Sincere |
Aces Electronics and Chant Sincere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aces Electronics and Chant Sincere
The main advantage of trading using opposite Aces Electronics and Chant Sincere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aces Electronics position performs unexpectedly, Chant Sincere 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 Chant Sincere will offset losses from the drop in Chant Sincere's long position.| Aces Electronics vs. Chant Sincere Co | Aces Electronics vs. Altek Corp | Aces Electronics vs. Jentech Precision Industrial | Aces Electronics vs. Lotes Co |
| Chant Sincere vs. Holy Stone Enterprise | Chant Sincere vs. Walsin Technology Corp | Chant Sincere vs. Yageo Corp | Chant Sincere vs. HannStar Board Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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