Correlation Between JF Technology and Dnonce Tech
Can any of the company-specific risk be diversified away by investing in both JF Technology and Dnonce Tech 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 Dnonce Tech 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 Dnonce Tech Bhd, you can compare the effects of market volatilities on JF Technology and Dnonce Tech 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 Dnonce Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and Dnonce Tech.
Diversification Opportunities for JF Technology and Dnonce Tech
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0146 and Dnonce is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and Dnonce Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dnonce Tech 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 Dnonce Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dnonce Tech Bhd has no effect on the direction of JF Technology i.e., JF Technology and Dnonce Tech go up and down completely randomly.
Pair Corralation between JF Technology and Dnonce Tech
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the Dnonce Tech. But the stock apears to be less risky and, when comparing its historical volatility, JF Technology BHD is 1.24 times less risky than Dnonce Tech. The stock trades about -0.27 of its potential returns per unit of risk. The Dnonce Tech Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Dnonce Tech Bhd on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Dnonce Tech Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JF Technology BHD vs. Dnonce Tech Bhd
Performance |
| Timeline |
| JF Technology BHD |
| Dnonce Tech Bhd |
JF Technology and Dnonce Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and Dnonce Tech
The main advantage of trading using opposite JF Technology and Dnonce Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, Dnonce Tech 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 Dnonce Tech will offset losses from the drop in Dnonce Tech's long position.| JF Technology vs. Greatech Technology Bhd | JF Technology vs. Genetec Technology Bhd | JF Technology vs. PIE Industrial Bhd | JF Technology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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