Correlation Between JF Technology and PGF Capital
Can any of the company-specific risk be diversified away by investing in both JF Technology and PGF Capital 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 PGF Capital 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 PGF Capital Bhd, you can compare the effects of market volatilities on JF Technology and PGF Capital 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 PGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and PGF Capital.
Diversification Opportunities for JF Technology and PGF Capital
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0146 and PGF is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and PGF Capital Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGF Capital 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 PGF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGF Capital Bhd has no effect on the direction of JF Technology i.e., JF Technology and PGF Capital go up and down completely randomly.
Pair Corralation between JF Technology and PGF Capital
Assuming the 90 days trading horizon JF Technology is expected to generate 9.68 times less return on investment than PGF Capital. In addition to that, JF Technology is 1.31 times more volatile than PGF Capital Bhd. It trades about 0.01 of its total potential returns per unit of risk. PGF Capital Bhd is currently generating about 0.07 per unit of volatility. If you would invest 119.00 in PGF Capital Bhd on September 14, 2024 and sell it today you would earn a total of 101.00 from holding PGF Capital Bhd or generate 84.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
JF Technology BHD vs. PGF Capital Bhd
Performance |
| Timeline |
| JF Technology BHD |
| PGF Capital Bhd |
JF Technology and PGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and PGF Capital
The main advantage of trading using opposite JF Technology and PGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, PGF Capital 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 PGF Capital will offset losses from the drop in PGF Capital's long position.| JF Technology vs. Petronas Chemicals Group | JF Technology vs. Greatech Technology Bhd | JF Technology vs. MI Technovation Bhd | JF Technology vs. MClean Technologies Bhd |
| PGF Capital vs. Globetronics Tech Bhd | PGF Capital vs. MI Technovation Bhd | PGF Capital vs. JF Technology BHD | PGF Capital vs. EA Technique M |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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