Correlation Between JF Technology and PIE Industrial
Can any of the company-specific risk be diversified away by investing in both JF Technology and PIE Industrial 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 PIE Industrial 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 PIE Industrial Bhd, you can compare the effects of market volatilities on JF Technology and PIE Industrial 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 PIE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and PIE Industrial.
Diversification Opportunities for JF Technology and PIE Industrial
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0146 and PIE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and PIE Industrial Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIE Industrial 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 PIE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIE Industrial Bhd has no effect on the direction of JF Technology i.e., JF Technology and PIE Industrial go up and down completely randomly.
Pair Corralation between JF Technology and PIE Industrial
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the PIE Industrial. But the stock apears to be less risky and, when comparing its historical volatility, JF Technology BHD is 1.3 times less risky than PIE Industrial. The stock trades about -0.08 of its potential returns per unit of risk. The PIE Industrial Bhd is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 319.00 in PIE Industrial Bhd on August 24, 2024 and sell it today you would earn a total of 256.00 from holding PIE Industrial Bhd or generate 80.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
JF Technology BHD vs. PIE Industrial Bhd
Performance |
| Timeline |
| JF Technology BHD |
| PIE Industrial Bhd |
JF Technology and PIE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and PIE Industrial
The main advantage of trading using opposite JF Technology and PIE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, PIE Industrial 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 PIE Industrial will offset losses from the drop in PIE Industrial's long position.| JF Technology vs. Greatech Technology Bhd | JF Technology vs. Uwc Bhd | JF Technology vs. Genetec Technology Bhd | JF Technology vs. PIE Industrial Bhd |
| PIE Industrial vs. Greatech Technology Bhd | PIE Industrial vs. Uwc Bhd | PIE Industrial vs. Genetec Technology Bhd | PIE Industrial vs. Dufu Tech Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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