Correlation Between Jetwell Computer and Pan Asia
Can any of the company-specific risk be diversified away by investing in both Jetwell Computer and Pan Asia 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 Jetwell Computer and Pan Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jetwell Computer Co and Pan Asia Chemical, you can compare the effects of market volatilities on Jetwell Computer and Pan Asia 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 Jetwell Computer with a short position of Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jetwell Computer and Pan Asia.
Diversification Opportunities for Jetwell Computer and Pan Asia
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jetwell and Pan is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jetwell Computer Co and Pan Asia Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Chemical and Jetwell Computer 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 Jetwell Computer Co are associated (or correlated) with Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Chemical has no effect on the direction of Jetwell Computer i.e., Jetwell Computer and Pan Asia go up and down completely randomly.
Pair Corralation between Jetwell Computer and Pan Asia
Assuming the 90 days trading horizon Jetwell Computer Co is expected to generate 2.19 times more return on investment than Pan Asia. However, Jetwell Computer is 2.19 times more volatile than Pan Asia Chemical. It trades about -0.01 of its potential returns per unit of risk. Pan Asia Chemical is currently generating about -0.18 per unit of risk. If you would invest 18,500 in Jetwell Computer Co on December 29, 2024 and sell it today you would lose (950.00) from holding Jetwell Computer Co or give up 5.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jetwell Computer Co vs. Pan Asia Chemical
Performance |
Timeline |
Jetwell Computer |
Pan Asia Chemical |
Jetwell Computer and Pan Asia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jetwell Computer and Pan Asia
The main advantage of trading using opposite Jetwell Computer and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jetwell Computer position performs unexpectedly, Pan Asia 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 Asia will offset losses from the drop in Pan Asia's long position.Jetwell Computer vs. Orient Semiconductor Electronics | Jetwell Computer vs. Grand Pacific Petrochemical | Jetwell Computer vs. Arima Communications Corp | Jetwell Computer vs. Chief Telecom |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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