Correlation Between Ji Haw and WinMate Communication
Can any of the company-specific risk be diversified away by investing in both Ji Haw and WinMate Communication 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 Ji Haw and WinMate Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ji Haw Industrial Co and WinMate Communication INC, you can compare the effects of market volatilities on Ji Haw and WinMate Communication 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 Ji Haw with a short position of WinMate Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ji Haw and WinMate Communication.
Diversification Opportunities for Ji Haw and WinMate Communication
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 3011 and WinMate is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ji Haw Industrial Co and WinMate Communication INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WinMate Communication INC and Ji Haw 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 Ji Haw Industrial Co are associated (or correlated) with WinMate Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WinMate Communication INC has no effect on the direction of Ji Haw i.e., Ji Haw and WinMate Communication go up and down completely randomly.
Pair Corralation between Ji Haw and WinMate Communication
Assuming the 90 days trading horizon Ji Haw Industrial Co is expected to under-perform the WinMate Communication. In addition to that, Ji Haw is 1.02 times more volatile than WinMate Communication INC. It trades about -0.23 of its total potential returns per unit of risk. WinMate Communication INC is currently generating about 0.1 per unit of volatility. If you would invest 15,150 in WinMate Communication INC on December 5, 2024 and sell it today you would earn a total of 1,900 from holding WinMate Communication INC or generate 12.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ji Haw Industrial Co vs. WinMate Communication INC
Performance |
Timeline |
Ji Haw Industrial |
WinMate Communication INC |
Ji Haw and WinMate Communication Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ji Haw and WinMate Communication
The main advantage of trading using opposite Ji Haw and WinMate Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ji Haw position performs unexpectedly, WinMate Communication 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 WinMate Communication will offset losses from the drop in WinMate Communication's long position.Ji Haw vs. Chenming Mold Industrial | Ji Haw vs. Tripod Technology Corp | Ji Haw vs. Asia Optical Co | Ji Haw vs. Welltend Technology Corp |
WinMate Communication vs. Advantech Co | WinMate Communication vs. IEI Integration Corp | WinMate Communication vs. Flytech Technology Co | WinMate Communication vs. Ennoconn 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |