Correlation Between Double Bond and Acelon Chemicals
Can any of the company-specific risk be diversified away by investing in both Double Bond and Acelon Chemicals 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 Double Bond and Acelon Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Double Bond Chemical and Acelon Chemicals Fiber, you can compare the effects of market volatilities on Double Bond and Acelon Chemicals 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 Double Bond with a short position of Acelon Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Bond and Acelon Chemicals.
Diversification Opportunities for Double Bond and Acelon Chemicals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Double and Acelon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Double Bond Chemical and Acelon Chemicals Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acelon Chemicals Fiber and Double Bond 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 Double Bond Chemical are associated (or correlated) with Acelon Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acelon Chemicals Fiber has no effect on the direction of Double Bond i.e., Double Bond and Acelon Chemicals go up and down completely randomly.
Pair Corralation between Double Bond and Acelon Chemicals
Assuming the 90 days trading horizon Double Bond Chemical is expected to generate 0.42 times more return on investment than Acelon Chemicals. However, Double Bond Chemical is 2.39 times less risky than Acelon Chemicals. It trades about 0.05 of its potential returns per unit of risk. Acelon Chemicals Fiber is currently generating about -0.23 per unit of risk. If you would invest 4,485 in Double Bond Chemical on October 12, 2024 and sell it today you would earn a total of 30.00 from holding Double Bond Chemical or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Bond Chemical vs. Acelon Chemicals Fiber
Performance |
| Timeline |
| Double Bond Chemical |
| Acelon Chemicals Fiber |
Double Bond and Acelon Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Bond and Acelon Chemicals
The main advantage of trading using opposite Double Bond and Acelon Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Bond position performs unexpectedly, Acelon Chemicals 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 Acelon Chemicals will offset losses from the drop in Acelon Chemicals' long position.| Double Bond vs. Coremax Corp | Double Bond vs. Taiwan Hopax Chemsistry | Double Bond vs. Delta Electronics | Double Bond vs. China Steel Chemical |
| Acelon Chemicals vs. Honmyue Enterprise Co | Acelon Chemicals vs. Tainan Spinning Co | Acelon Chemicals vs. Chia Her Industrial | Acelon Chemicals vs. Zig Sheng Industrial |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |