Correlation Between Jinan Acetate and Ever Clear
Can any of the company-specific risk be diversified away by investing in both Jinan Acetate and Ever Clear 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 Ever Clear 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 Ever Clear Environmental Eng, you can compare the effects of market volatilities on Jinan Acetate and Ever Clear 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 Ever Clear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinan Acetate and Ever Clear.
Diversification Opportunities for Jinan Acetate and Ever Clear
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinan and Ever is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jinan Acetate Chemical and Ever Clear Environmental Eng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Clear Environme 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 Ever Clear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Clear Environme has no effect on the direction of Jinan Acetate i.e., Jinan Acetate and Ever Clear go up and down completely randomly.
Pair Corralation between Jinan Acetate and Ever Clear
Assuming the 90 days trading horizon Jinan Acetate Chemical is expected to generate 3.33 times more return on investment than Ever Clear. However, Jinan Acetate is 3.33 times more volatile than Ever Clear Environmental Eng. It trades about 0.12 of its potential returns per unit of risk. Ever Clear Environmental Eng is currently generating about -0.2 per unit of risk. If you would invest 85,500 in Jinan Acetate Chemical on September 2, 2024 and sell it today you would earn a total of 3,400 from holding Jinan Acetate Chemical or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinan Acetate Chemical vs. Ever Clear Environmental Eng
Performance |
| Timeline |
| Jinan Acetate Chemical |
| Ever Clear Environme |
Jinan Acetate and Ever Clear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinan Acetate and Ever Clear
The main advantage of trading using opposite Jinan Acetate and Ever Clear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinan Acetate position performs unexpectedly, Ever Clear 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 Ever Clear will offset losses from the drop in Ever Clear'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 |
| Ever Clear vs. Cleanaway Co | Ever Clear vs. Taiwan Secom Co | Ever Clear vs. TTET Union Corp | Ever Clear vs. Tehmag Foods |
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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