Correlation Between Ji Haw and Top Union
Can any of the company-specific risk be diversified away by investing in both Ji Haw and Top Union 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 Top Union 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 Top Union Electronics, you can compare the effects of market volatilities on Ji Haw and Top Union 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 Top Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ji Haw and Top Union.
Diversification Opportunities for Ji Haw and Top Union
Significant diversification
The 3 months correlation between 3011 and Top is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ji Haw Industrial Co and Top Union Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top Union Electronics 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 Top Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top Union Electronics has no effect on the direction of Ji Haw i.e., Ji Haw and Top Union go up and down completely randomly.
Pair Corralation between Ji Haw and Top Union
Assuming the 90 days trading horizon Ji Haw Industrial Co is expected to under-perform the Top Union. In addition to that, Ji Haw is 2.65 times more volatile than Top Union Electronics. It trades about -0.16 of its total potential returns per unit of risk. Top Union Electronics is currently generating about 0.15 per unit of volatility. If you would invest 3,250 in Top Union Electronics on December 28, 2024 and sell it today you would earn a total of 250.00 from holding Top Union Electronics or generate 7.69% 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. Top Union Electronics
Performance |
Timeline |
Ji Haw Industrial |
Top Union Electronics |
Ji Haw and Top Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ji Haw and Top Union
The main advantage of trading using opposite Ji Haw and Top Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ji Haw position performs unexpectedly, Top Union 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 Top Union will offset losses from the drop in Top Union'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 |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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