Correlation Between Sino American and Jinan Acetate
Can any of the company-specific risk be diversified away by investing in both Sino American and Jinan Acetate 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 Sino American and Jinan Acetate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino American Silicon Products and Jinan Acetate Chemical, you can compare the effects of market volatilities on Sino American and Jinan Acetate 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 Sino American with a short position of Jinan Acetate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino American and Jinan Acetate.
Diversification Opportunities for Sino American and Jinan Acetate
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sino and Jinan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sino American Silicon Products and Jinan Acetate Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinan Acetate Chemical and Sino American 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 Sino American Silicon Products are associated (or correlated) with Jinan Acetate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinan Acetate Chemical has no effect on the direction of Sino American i.e., Sino American and Jinan Acetate go up and down completely randomly.
Pair Corralation between Sino American and Jinan Acetate
Assuming the 90 days trading horizon Sino American is expected to generate 11.02 times less return on investment than Jinan Acetate. But when comparing it to its historical volatility, Sino American Silicon Products is 2.1 times less risky than Jinan Acetate. It trades about 0.02 of its potential returns per unit of risk. Jinan Acetate Chemical is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 |
Sino American Silicon Products vs. Jinan Acetate Chemical
Performance |
| Timeline |
| Sino American Silicon |
| Jinan Acetate Chemical |
Sino American and Jinan Acetate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino American and Jinan Acetate
The main advantage of trading using opposite Sino American and Jinan Acetate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino American position performs unexpectedly, Jinan Acetate 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 Jinan Acetate will offset losses from the drop in Jinan Acetate's long position.| Sino American vs. Powertech Technology | Sino American vs. Formosa Sumco Technology | Sino American vs. Radiant Opto Electronics Corp | Sino American vs. Faraday Technology Corp |
| Jinan Acetate vs. San Fu Chemical | Jinan Acetate vs. Tex Year Industries | Jinan Acetate vs. Concraft Holding Co | Jinan Acetate vs. Coremax 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |