Correlation Between Acelon Chemicals and Sporton International
Can any of the company-specific risk be diversified away by investing in both Acelon Chemicals and Sporton International 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 Acelon Chemicals and Sporton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acelon Chemicals Fiber and Sporton International, you can compare the effects of market volatilities on Acelon Chemicals and Sporton International 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 Acelon Chemicals with a short position of Sporton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acelon Chemicals and Sporton International.
Diversification Opportunities for Acelon Chemicals and Sporton International
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acelon and Sporton is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Acelon Chemicals Fiber and Sporton International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporton International and Acelon Chemicals 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 Acelon Chemicals Fiber are associated (or correlated) with Sporton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporton International has no effect on the direction of Acelon Chemicals i.e., Acelon Chemicals and Sporton International go up and down completely randomly.
Pair Corralation between Acelon Chemicals and Sporton International
Assuming the 90 days trading horizon Acelon Chemicals Fiber is expected to generate 2.08 times more return on investment than Sporton International. However, Acelon Chemicals is 2.08 times more volatile than Sporton International. It trades about 0.05 of its potential returns per unit of risk. Sporton International is currently generating about -0.01 per unit of risk. If you would invest 1,190 in Acelon Chemicals Fiber on December 5, 2024 and sell it today you would earn a total of 125.00 from holding Acelon Chemicals Fiber or generate 10.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Acelon Chemicals Fiber vs. Sporton International
Performance |
Timeline |
Acelon Chemicals Fiber |
Sporton International |
Acelon Chemicals and Sporton International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acelon Chemicals and Sporton International
The main advantage of trading using opposite Acelon Chemicals and Sporton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acelon Chemicals position performs unexpectedly, Sporton International 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 Sporton International will offset losses from the drop in Sporton International's long position.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |