Correlation Between Jinan Acetate and Dimerco Data
Can any of the company-specific risk be diversified away by investing in both Jinan Acetate and Dimerco Data 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 Dimerco Data 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 Dimerco Data System, you can compare the effects of market volatilities on Jinan Acetate and Dimerco Data 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 Dimerco Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinan Acetate and Dimerco Data.
Diversification Opportunities for Jinan Acetate and Dimerco Data
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jinan and Dimerco is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jinan Acetate Chemical and Dimerco Data System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimerco Data System 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 Dimerco Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimerco Data System has no effect on the direction of Jinan Acetate i.e., Jinan Acetate and Dimerco Data go up and down completely randomly.
Pair Corralation between Jinan Acetate and Dimerco Data
Assuming the 90 days trading horizon Jinan Acetate Chemical is expected to generate 1.31 times more return on investment than Dimerco Data. However, Jinan Acetate is 1.31 times more volatile than Dimerco Data System. It trades about 0.08 of its potential returns per unit of risk. Dimerco Data System is currently generating about -0.23 per unit of risk. If you would invest 84,200 in Jinan Acetate Chemical on August 30, 2024 and sell it today you would earn a total of 2,200 from holding Jinan Acetate Chemical or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jinan Acetate Chemical vs. Dimerco Data System
Performance |
| Timeline |
| Jinan Acetate Chemical |
| Dimerco Data System |
Jinan Acetate and Dimerco Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinan Acetate and Dimerco Data
The main advantage of trading using opposite Jinan Acetate and Dimerco Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinan Acetate position performs unexpectedly, Dimerco Data 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 Dimerco Data will offset losses from the drop in Dimerco Data'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 |
| Dimerco Data vs. YuantaP shares Taiwan Electronics | Dimerco Data vs. YuantaP shares Taiwan Mid Cap | Dimerco Data vs. YuantaP shares Taiwan Top | Dimerco Data vs. Fubon MSCI Taiwan |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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