Correlation Between Basso Industry and Jinan Acetate
Can any of the company-specific risk be diversified away by investing in both Basso Industry 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 Basso Industry and Jinan Acetate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Basso Industry Corp and Jinan Acetate Chemical, you can compare the effects of market volatilities on Basso Industry 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 Basso Industry with a short position of Jinan Acetate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basso Industry and Jinan Acetate.
Diversification Opportunities for Basso Industry and Jinan Acetate
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Basso and Jinan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Basso Industry Corp 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 Basso Industry 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 Basso Industry Corp 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 Basso Industry i.e., Basso Industry and Jinan Acetate go up and down completely randomly.
Pair Corralation between Basso Industry and Jinan Acetate
Assuming the 90 days trading horizon Basso Industry is expected to generate 1.8 times less return on investment than Jinan Acetate. But when comparing it to its historical volatility, Basso Industry Corp is 1.97 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 0.01 of returns per unit of risk over similar time horizon. If you would invest 88,100 in Jinan Acetate Chemical on October 9, 2024 and sell it today you would earn a total of 400.00 from holding Jinan Acetate Chemical or generate 0.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Basso Industry Corp vs. Jinan Acetate Chemical
Performance |
Timeline |
Basso Industry Corp |
Jinan Acetate Chemical |
Basso Industry and Jinan Acetate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Basso Industry and Jinan Acetate
The main advantage of trading using opposite Basso Industry and Jinan Acetate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basso Industry 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.Basso Industry vs. Cheng Shin Rubber | Basso Industry vs. Kung Long Batteries | Basso Industry vs. Pou Chen Corp | Basso Industry vs. China Steel Chemical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |