Correlation Between Holtek Semiconductor and Acelon Chemicals

Can any of the company-specific risk be diversified away by investing in both Holtek Semiconductor 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 Holtek Semiconductor and Acelon Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Holtek Semiconductor and Acelon Chemicals Fiber, you can compare the effects of market volatilities on Holtek Semiconductor 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 Holtek Semiconductor with a short position of Acelon Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holtek Semiconductor and Acelon Chemicals.

Diversification Opportunities for Holtek Semiconductor and Acelon Chemicals

0.88

Correlation Coefficient

Holtek Semiconductor  Acelon Chemicals

Very poor diversification

The 3 months correlation between Holtek and Acelon is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Holtek Semiconductor 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 Holtek Semiconductor 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 Holtek Semiconductor 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 Holtek Semiconductor i.e., Holtek Semiconductor and Acelon Chemicals go up and down completely randomly.

Pair Corralation between Holtek Semiconductor and Acelon Chemicals

Assuming the 90 days trading horizon Holtek Semiconductor is expected to generate 0.69 times more return on investment than Acelon Chemicals. However, Holtek Semiconductor is 1.44 times less risky than Acelon Chemicals. It trades about 0.08 of its potential returns per unit of risk. Acelon Chemicals Fiber is currently generating about 0.05 per unit of risk. If you would invest  3,800  in Holtek Semiconductor on April 23, 2025 and sell it today you would earn a total of  365.00  from holding Holtek Semiconductor or generate 9.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Holtek Semiconductor  vs.  Acelon Chemicals Fiber

Holtek Semiconductor

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Holtek Semiconductor are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Holtek Semiconductor may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Acelon Chemicals Fiber

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Acelon Chemicals Fiber are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Acelon Chemicals may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Holtek Semiconductor and Acelon Chemicals

The main advantage of trading using opposite Holtek Semiconductor and Acelon Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holtek Semiconductor 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.

The idea behind Holtek Semiconductor and Acelon Chemicals Fiber pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.