Correlation Between Jinan Acetate and Tex Year
Can any of the company-specific risk be diversified away by investing in both Jinan Acetate and Tex Year 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 Jinan Acetate and Tex Year into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jinan Acetate Chemical and Tex Year Industries, you can compare the effects of market volatilities on Jinan Acetate and Tex Year 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 Jinan Acetate with a short position of Tex Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinan Acetate and Tex Year.
Diversification Opportunities for Jinan Acetate and Tex Year
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinan and Tex is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jinan Acetate Chemical and Tex Year Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tex Year Industries and Jinan Acetate 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 Jinan Acetate Chemical are associated (or correlated) with Tex Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tex Year Industries has no effect on the direction of Jinan Acetate i.e., Jinan Acetate and Tex Year go up and down completely randomly.
Pair Corralation between Jinan Acetate and Tex Year
Assuming the 90 days trading horizon Jinan Acetate Chemical is expected to generate 2.21 times more return on investment than Tex Year. However, Jinan Acetate is 2.21 times more volatile than Tex Year Industries. It trades about 0.3 of its potential returns per unit of risk. Tex Year Industries is currently generating about 0.57 per unit of risk. If you would invest 84,600 in Jinan Acetate Chemical on November 28, 2024 and sell it today you would earn a total of 7,000 from holding Jinan Acetate Chemical or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Jinan Acetate Chemical vs. Tex Year Industries
Performance |
| Timeline |
| Jinan Acetate Chemical |
| Tex Year Industries |
Jinan Acetate and Tex Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinan Acetate and Tex Year
The main advantage of trading using opposite Jinan Acetate and Tex Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinan Acetate position performs unexpectedly, Tex Year 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 Tex Year will offset losses from the drop in Tex Year's long position.| Jinan Acetate vs. San Fu Chemical | Jinan Acetate vs. Tex Year Industries | Jinan Acetate vs. Concraft Holding Co | Jinan Acetate vs. Coremax Corp |
| Tex Year vs. Jinan Acetate Chemical | Tex Year vs. San Fu Chemical | Tex Year vs. Concraft Holding Co | Tex Year vs. Halfords Group PLC |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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