Correlation Between JF Technology and Privasia Technology
Can any of the company-specific risk be diversified away by investing in both JF Technology and Privasia Technology 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 JF Technology and Privasia Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JF Technology BHD and Privasia Technology Bhd, you can compare the effects of market volatilities on JF Technology and Privasia Technology 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 JF Technology with a short position of Privasia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and Privasia Technology.
Diversification Opportunities for JF Technology and Privasia Technology
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0146 and Privasia is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and Privasia Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Privasia Technology Bhd and JF Technology 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 JF Technology BHD are associated (or correlated) with Privasia Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Privasia Technology Bhd has no effect on the direction of JF Technology i.e., JF Technology and Privasia Technology go up and down completely randomly.
Pair Corralation between JF Technology and Privasia Technology
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the Privasia Technology. But the stock apears to be less risky and, when comparing its historical volatility, JF Technology BHD is 2.11 times less risky than Privasia Technology. The stock trades about -0.1 of its potential returns per unit of risk. The Privasia Technology Bhd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Privasia Technology Bhd on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Privasia Technology Bhd or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JF Technology BHD vs. Privasia Technology Bhd
Performance |
| Timeline |
| JF Technology BHD |
| Privasia Technology Bhd |
JF Technology and Privasia Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and Privasia Technology
The main advantage of trading using opposite JF Technology and Privasia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, Privasia Technology 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 Privasia Technology will offset losses from the drop in Privasia Technology's long position.| JF Technology vs. Cloudpoint Technology Berhad | JF Technology vs. SSF Home Group | JF Technology vs. Aurelius Technologies Bhd | JF Technology vs. Senheng New Retail |
| Privasia Technology vs. Impiana Hotels Bhd | Privasia Technology vs. Mycron Steel Bhd | Privasia Technology vs. Shangri La Hotels | Privasia Technology vs. Sunway Construction Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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