Correlation Between JF Technology and TAS Offshore
Can any of the company-specific risk be diversified away by investing in both JF Technology and TAS Offshore 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 TAS Offshore 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 TAS Offshore Bhd, you can compare the effects of market volatilities on JF Technology and TAS Offshore 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 TAS Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and TAS Offshore.
Diversification Opportunities for JF Technology and TAS Offshore
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 0146 and TAS is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and TAS Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAS Offshore 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 TAS Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAS Offshore Bhd has no effect on the direction of JF Technology i.e., JF Technology and TAS Offshore go up and down completely randomly.
Pair Corralation between JF Technology and TAS Offshore
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the TAS Offshore. In addition to that, JF Technology is 1.11 times more volatile than TAS Offshore Bhd. It trades about -0.33 of its total potential returns per unit of risk. TAS Offshore Bhd is currently generating about -0.2 per unit of volatility. If you would invest 71.00 in TAS Offshore Bhd on August 30, 2024 and sell it today you would lose (7.00) from holding TAS Offshore Bhd or give up 9.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JF Technology BHD vs. TAS Offshore Bhd
Performance |
| Timeline |
| JF Technology BHD |
| TAS Offshore Bhd |
JF Technology and TAS Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and TAS Offshore
The main advantage of trading using opposite JF Technology and TAS Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, TAS Offshore 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 TAS Offshore will offset losses from the drop in TAS Offshore's long position.| JF Technology vs. YTL Hospitality REIT | JF Technology vs. IHH Healthcare Bhd | JF Technology vs. Tex Cycle Technology | JF Technology vs. CB Industrial Product |
| TAS Offshore vs. Press Metal Bhd | TAS Offshore vs. Eonmetall Group Bhd | TAS Offshore vs. Uchi Technologies Bhd | TAS Offshore vs. Sapura Industrial 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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