Correlation Between Jinan Acetate and X Legend
Can any of the company-specific risk be diversified away by investing in both Jinan Acetate and X Legend 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 X Legend 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 X Legend Entertainment Co, you can compare the effects of market volatilities on Jinan Acetate and X Legend 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 X Legend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinan Acetate and X Legend.
Diversification Opportunities for Jinan Acetate and X Legend
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jinan and 4994 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jinan Acetate Chemical and X Legend Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Legend Entertainment 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 X Legend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Legend Entertainment has no effect on the direction of Jinan Acetate i.e., Jinan Acetate and X Legend go up and down completely randomly.
Pair Corralation between Jinan Acetate and X Legend
Assuming the 90 days trading horizon Jinan Acetate is expected to generate 1.26 times less return on investment than X Legend. In addition to that, Jinan Acetate is 1.26 times more volatile than X Legend Entertainment Co. It trades about 0.13 of its total potential returns per unit of risk. X Legend Entertainment Co is currently generating about 0.21 per unit of volatility. If you would invest 10,250 in X Legend Entertainment Co on August 31, 2024 and sell it today you would earn a total of 600.00 from holding X Legend Entertainment Co or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinan Acetate Chemical vs. X Legend Entertainment Co
Performance |
| Timeline |
| Jinan Acetate Chemical |
| X Legend Entertainment |
Jinan Acetate and X Legend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinan Acetate and X Legend
The main advantage of trading using opposite Jinan Acetate and X Legend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinan Acetate position performs unexpectedly, X Legend 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 X Legend will offset losses from the drop in X Legend'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 |
| X Legend vs. Abnova Taiwan Corp | X Legend vs. Cheng Mei Materials | X Legend vs. BizLink Holding | X Legend vs. Lemtech Holdings 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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