Correlation Between Ju Teng and Micro Star
Can any of the company-specific risk be diversified away by investing in both Ju Teng and Micro Star 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 Ju Teng and Micro Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ju Teng International and Micro Star International Co, you can compare the effects of market volatilities on Ju Teng and Micro Star 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 Ju Teng with a short position of Micro Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ju Teng and Micro Star.
Diversification Opportunities for Ju Teng and Micro Star
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 9136 and Micro is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ju Teng International and Micro Star International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Star Internati and Ju Teng 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 Ju Teng International are associated (or correlated) with Micro Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Star Internati has no effect on the direction of Ju Teng i.e., Ju Teng and Micro Star go up and down completely randomly.
Pair Corralation between Ju Teng and Micro Star
Assuming the 90 days trading horizon Ju Teng International is expected to generate 0.74 times more return on investment than Micro Star. However, Ju Teng International is 1.35 times less risky than Micro Star. It trades about 0.23 of its potential returns per unit of risk. Micro Star International Co is currently generating about 0.04 per unit of risk. If you would invest 609.00 in Ju Teng International on October 24, 2024 and sell it today you would earn a total of 41.00 from holding Ju Teng International or generate 6.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ju Teng International vs. Micro Star International Co
Performance |
Timeline |
Ju Teng International |
Micro Star Internati |
Ju Teng and Micro Star Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ju Teng and Micro Star
The main advantage of trading using opposite Ju Teng and Micro Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ju Teng position performs unexpectedly, Micro Star 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 Micro Star will offset losses from the drop in Micro Star's long position.Ju Teng vs. Cal Comp Electronics Public | Ju Teng vs. Catcher Technology Co | Ju Teng vs. Darfon Electronics Corp | Ju Teng vs. Digital China Holdings |
Micro Star vs. Clevo Co | Micro Star vs. Gigastorage Corp | Micro Star vs. KYE Systems Corp | Micro Star vs. AVerMedia Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |