Correlation Between JF Technology and CSC Steel
Can any of the company-specific risk be diversified away by investing in both JF Technology and CSC Steel 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 CSC Steel 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 CSC Steel Holdings, you can compare the effects of market volatilities on JF Technology and CSC Steel 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 CSC Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and CSC Steel.
Diversification Opportunities for JF Technology and CSC Steel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0146 and CSC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and CSC Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Steel Holdings 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 CSC Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Steel Holdings has no effect on the direction of JF Technology i.e., JF Technology and CSC Steel go up and down completely randomly.
Pair Corralation between JF Technology and CSC Steel
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the CSC Steel. In addition to that, JF Technology is 2.23 times more volatile than CSC Steel Holdings. It trades about 0.0 of its total potential returns per unit of risk. CSC Steel Holdings is currently generating about 0.02 per unit of volatility. If you would invest 108.00 in CSC Steel Holdings on September 12, 2024 and sell it today you would earn a total of 9.00 from holding CSC Steel Holdings or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JF Technology BHD vs. CSC Steel Holdings
Performance |
| Timeline |
| JF Technology BHD |
| CSC Steel Holdings |
JF Technology and CSC Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and CSC Steel
The main advantage of trading using opposite JF Technology and CSC Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, CSC Steel 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 CSC Steel will offset losses from the drop in CSC Steel's long position.| JF Technology vs. PIE Industrial Bhd | JF Technology vs. Kobay Tech Bhd | JF Technology vs. CB Industrial Product | JF Technology vs. MyTech Group Bhd |
| CSC Steel vs. Globetronics Tech Bhd | CSC Steel vs. Ho Hup Construction | CSC Steel vs. JF Technology BHD | CSC Steel vs. MI Technovation Bhd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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