Correlation Between Jinan Acetate and Sino American
Can any of the company-specific risk be diversified away by investing in both Jinan Acetate and Sino American 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 Sino American 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 Sino American Silicon Products, you can compare the effects of market volatilities on Jinan Acetate and Sino American 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 Sino American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinan Acetate and Sino American.
Diversification Opportunities for Jinan Acetate and Sino American
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinan and Sino is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jinan Acetate Chemical and Sino American Silicon Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino American Silicon 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 Sino American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino American Silicon has no effect on the direction of Jinan Acetate i.e., Jinan Acetate and Sino American go up and down completely randomly.
Pair Corralation between Jinan Acetate and Sino American
Assuming the 90 days trading horizon Jinan Acetate Chemical is expected to generate 2.1 times more return on investment than Sino American. However, Jinan Acetate is 2.1 times more volatile than Sino American Silicon Products. It trades about 0.11 of its potential returns per unit of risk. Sino American Silicon Products is currently generating about 0.02 per unit of risk. If you would invest 18,085 in Jinan Acetate Chemical on August 30, 2024 and sell it today you would earn a total of 68,315 from holding Jinan Acetate Chemical or generate 377.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinan Acetate Chemical vs. Sino American Silicon Products
Performance |
| Timeline |
| Jinan Acetate Chemical |
| Sino American Silicon |
Jinan Acetate and Sino American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinan Acetate and Sino American
The main advantage of trading using opposite Jinan Acetate and Sino American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinan Acetate position performs unexpectedly, Sino American 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 Sino American will offset losses from the drop in Sino American'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 |
| Sino American vs. Powertech Technology | Sino American vs. Formosa Sumco Technology | Sino American vs. Radiant Opto Electronics Corp | Sino American vs. Faraday Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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