Correlation Between JF Technology and FGV Holdings
Can any of the company-specific risk be diversified away by investing in both JF Technology and FGV Holdings 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 FGV Holdings 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 FGV Holdings Bhd, you can compare the effects of market volatilities on JF Technology and FGV Holdings 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 FGV Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and FGV Holdings.
Diversification Opportunities for JF Technology and FGV Holdings
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0146 and FGV is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and FGV Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGV Holdings 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 FGV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGV Holdings Bhd has no effect on the direction of JF Technology i.e., JF Technology and FGV Holdings go up and down completely randomly.
Pair Corralation between JF Technology and FGV Holdings
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the FGV Holdings. In addition to that, JF Technology is 1.85 times more volatile than FGV Holdings Bhd. It trades about -0.32 of its total potential returns per unit of risk. FGV Holdings Bhd is currently generating about -0.1 per unit of volatility. If you would invest 112.00 in FGV Holdings Bhd on October 23, 2024 and sell it today you would lose (3.00) from holding FGV Holdings Bhd or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JF Technology BHD vs. FGV Holdings Bhd
Performance |
| Timeline |
| JF Technology BHD |
| FGV Holdings Bhd |
JF Technology and FGV Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and FGV Holdings
The main advantage of trading using opposite JF Technology and FGV Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, FGV Holdings 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 FGV Holdings will offset losses from the drop in FGV Holdings' long position.| JF Technology vs. Binasat Communications Bhd | JF Technology vs. Rubberex M | JF Technology vs. Petronas Chemicals Group | JF Technology vs. Riverview Rubber Estates |
| FGV Holdings vs. Sports Toto Berhad | FGV Holdings vs. Dataprep Holdings Bhd | FGV Holdings vs. Tex Cycle Technology | FGV Holdings vs. RHB Bank 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance |