Correlation Between Phoenix Silicon and Acelon Chemicals
Can any of the company-specific risk be diversified away by investing in both Phoenix Silicon 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 Phoenix Silicon and Acelon Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix Silicon International and Acelon Chemicals Fiber, you can compare the effects of market volatilities on Phoenix Silicon 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 Phoenix Silicon with a short position of Acelon Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Silicon and Acelon Chemicals.
Diversification Opportunities for Phoenix Silicon and Acelon Chemicals
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Phoenix and Acelon is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Silicon International 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 Phoenix Silicon 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 Phoenix Silicon International 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 Phoenix Silicon i.e., Phoenix Silicon and Acelon Chemicals go up and down completely randomly.
Pair Corralation between Phoenix Silicon and Acelon Chemicals
Assuming the 90 days trading horizon Phoenix Silicon International is expected to generate 1.31 times more return on investment than Acelon Chemicals. However, Phoenix Silicon is 1.31 times more volatile than Acelon Chemicals Fiber. It trades about -0.02 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 13,100 in Phoenix Silicon International on October 12, 2024 and sell it today you would lose (200.00) from holding Phoenix Silicon International or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix Silicon International vs. Acelon Chemicals Fiber
Performance |
| Timeline |
| Phoenix Silicon Inte |
| Acelon Chemicals Fiber |
Phoenix Silicon and Acelon Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Silicon and Acelon Chemicals
The main advantage of trading using opposite Phoenix Silicon and Acelon Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Silicon 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.| Phoenix Silicon vs. Scientech Corp | Phoenix Silicon vs. Sitronix Technology Corp | Phoenix Silicon vs. Kinsus Interconnect Technology | Phoenix Silicon vs. Andes Technology Corp |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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