Correlation Between JF Technology and Dufu Tech
Can any of the company-specific risk be diversified away by investing in both JF Technology and Dufu 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 Dufu 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 Dufu Tech Corp, you can compare the effects of market volatilities on JF Technology and Dufu 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 Dufu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and Dufu Tech.
Diversification Opportunities for JF Technology and Dufu Tech
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 0146 and Dufu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and Dufu Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dufu Tech Corp 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 Dufu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dufu Tech Corp has no effect on the direction of JF Technology i.e., JF Technology and Dufu Tech go up and down completely randomly.
Pair Corralation between JF Technology and Dufu Tech
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the Dufu Tech. In addition to that, JF Technology is 1.1 times more volatile than Dufu Tech Corp. It trades about -0.14 of its total potential returns per unit of risk. Dufu Tech Corp is currently generating about -0.07 per unit of volatility. If you would invest 176.00 in Dufu Tech Corp on August 24, 2024 and sell it today you would lose (7.00) from holding Dufu Tech Corp or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JF Technology BHD vs. Dufu Tech Corp
Performance |
| Timeline |
| JF Technology BHD |
| Dufu Tech Corp |
JF Technology and Dufu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and Dufu Tech
The main advantage of trading using opposite JF Technology and Dufu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, Dufu 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 Dufu Tech will offset losses from the drop in Dufu Tech'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 |
| Dufu Tech vs. Apollo Food Holdings | Dufu Tech vs. IHH Healthcare Bhd | Dufu Tech vs. YTL Hospitality REIT | Dufu Tech vs. Petronas Chemicals Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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