Correlation Between Ji Haw and Wha Yu
Can any of the company-specific risk be diversified away by investing in both Ji Haw and Wha Yu 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 Wha Yu 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 Wha Yu Industrial, you can compare the effects of market volatilities on Ji Haw and Wha Yu 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 Wha Yu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ji Haw and Wha Yu.
Diversification Opportunities for Ji Haw and Wha Yu
Average diversification
The 3 months correlation between 3011 and Wha is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ji Haw Industrial Co and Wha Yu Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wha Yu Industrial 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 Wha Yu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wha Yu Industrial has no effect on the direction of Ji Haw i.e., Ji Haw and Wha Yu go up and down completely randomly.
Pair Corralation between Ji Haw and Wha Yu
Assuming the 90 days trading horizon Ji Haw is expected to generate 16.36 times less return on investment than Wha Yu. In addition to that, Ji Haw is 2.09 times more volatile than Wha Yu Industrial. It trades about 0.01 of its total potential returns per unit of risk. Wha Yu Industrial is currently generating about 0.24 per unit of volatility. If you would invest 1,685 in Wha Yu Industrial on December 5, 2024 and sell it today you would earn a total of 110.00 from holding Wha Yu Industrial or generate 6.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ji Haw Industrial Co vs. Wha Yu Industrial
Performance |
Timeline |
Ji Haw Industrial |
Wha Yu Industrial |
Ji Haw and Wha Yu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ji Haw and Wha Yu
The main advantage of trading using opposite Ji Haw and Wha Yu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ji Haw position performs unexpectedly, Wha Yu 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 Wha Yu will offset losses from the drop in Wha Yu'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 |
Wha Yu vs. Gemtek Technology Co | Wha Yu vs. Arcadyan Technology Corp | Wha Yu vs. Zinwell | Wha Yu vs. Silitech Technology 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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