Correlation Between Elite Material and Pan Jit
Can any of the company-specific risk be diversified away by investing in both Elite Material and Pan Jit 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 Elite Material and Pan Jit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elite Material Co and Pan Jit International, you can compare the effects of market volatilities on Elite Material and Pan Jit 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 Elite Material with a short position of Pan Jit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Material and Pan Jit.
Diversification Opportunities for Elite Material and Pan Jit
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elite and Pan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Elite Material Co and Pan Jit International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Jit International and Elite Material 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 Elite Material Co are associated (or correlated) with Pan Jit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Jit International has no effect on the direction of Elite Material i.e., Elite Material and Pan Jit go up and down completely randomly.
Pair Corralation between Elite Material and Pan Jit
Assuming the 90 days trading horizon Elite Material Co is expected to under-perform the Pan Jit. In addition to that, Elite Material is 1.47 times more volatile than Pan Jit International. It trades about -0.01 of its total potential returns per unit of risk. Pan Jit International is currently generating about 0.11 per unit of volatility. If you would invest 5,100 in Pan Jit International on December 28, 2024 and sell it today you would earn a total of 550.00 from holding Pan Jit International or generate 10.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Elite Material Co vs. Pan Jit International
Performance |
Timeline |
Elite Material |
Pan Jit International |
Elite Material and Pan Jit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elite Material and Pan Jit
The main advantage of trading using opposite Elite Material and Pan Jit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Material position performs unexpectedly, Pan Jit 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 Pan Jit will offset losses from the drop in Pan Jit's long position.Elite Material vs. Compeq Manufacturing Co | Elite Material vs. ITEQ Corp | Elite Material vs. Unimicron Technology Corp | Elite Material vs. Chicony Electronics Co |
Pan Jit vs. Elan Microelectronics Corp | Pan Jit vs. Walsin Technology Corp | Pan Jit vs. Unimicron Technology Corp | Pan Jit vs. Visual Photonics Epitaxy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Bonds Directory Find actively traded corporate debentures issued by US companies |