Correlation Between Jinan Acetate and Quanta Storage
Can any of the company-specific risk be diversified away by investing in both Jinan Acetate and Quanta Storage 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 Quanta Storage 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 Quanta Storage, you can compare the effects of market volatilities on Jinan Acetate and Quanta Storage 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 Quanta Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinan Acetate and Quanta Storage.
Diversification Opportunities for Jinan Acetate and Quanta Storage
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jinan and Quanta is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jinan Acetate Chemical and Quanta Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanta Storage 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 Quanta Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanta Storage has no effect on the direction of Jinan Acetate i.e., Jinan Acetate and Quanta Storage go up and down completely randomly.
Pair Corralation between Jinan Acetate and Quanta Storage
Assuming the 90 days trading horizon Jinan Acetate Chemical is expected to generate 1.08 times more return on investment than Quanta Storage. However, Jinan Acetate is 1.08 times more volatile than Quanta Storage. It trades about 0.08 of its potential returns per unit of risk. Quanta Storage is currently generating about 0.07 per unit of risk. If you would invest 30,750 in Jinan Acetate Chemical on November 19, 2024 and sell it today you would earn a total of 60,050 from holding Jinan Acetate Chemical or generate 195.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jinan Acetate Chemical vs. Quanta Storage
Performance |
| Timeline |
| Jinan Acetate Chemical |
| Quanta Storage |
Jinan Acetate and Quanta Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinan Acetate and Quanta Storage
The main advantage of trading using opposite Jinan Acetate and Quanta Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinan Acetate position performs unexpectedly, Quanta Storage 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 Quanta Storage will offset losses from the drop in Quanta Storage'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 |
| Quanta Storage vs. ASRock Inc | Quanta Storage vs. Ko Ja Cayman | Quanta Storage vs. Chenbro Micom Co | Quanta Storage vs. Leadtek Research |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |