Correlation Between JF Technology and Crest Builder
Can any of the company-specific risk be diversified away by investing in both JF Technology and Crest Builder 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 Crest Builder 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 Crest Builder Holdings, you can compare the effects of market volatilities on JF Technology and Crest Builder 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 Crest Builder. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and Crest Builder.
Diversification Opportunities for JF Technology and Crest Builder
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0146 and Crest is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and Crest Builder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crest Builder Holdings 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 Crest Builder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crest Builder Holdings has no effect on the direction of JF Technology i.e., JF Technology and Crest Builder go up and down completely randomly.
Pair Corralation between JF Technology and Crest Builder
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the Crest Builder. In addition to that, JF Technology is 1.56 times more volatile than Crest Builder Holdings. It trades about -0.02 of its total potential returns per unit of risk. Crest Builder Holdings is currently generating about 0.05 per unit of volatility. If you would invest 51.00 in Crest Builder Holdings on September 14, 2024 and sell it today you would earn a total of 10.00 from holding Crest Builder Holdings or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JF Technology BHD vs. Crest Builder Holdings
Performance |
| Timeline |
| JF Technology BHD |
| Crest Builder Holdings |
JF Technology and Crest Builder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and Crest Builder
The main advantage of trading using opposite JF Technology and Crest Builder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, Crest Builder 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 Crest Builder will offset losses from the drop in Crest Builder'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 |
| Crest Builder vs. Greatech Technology Bhd | Crest Builder vs. Minetech Resources Bhd | Crest Builder vs. ES Ceramics Technology | Crest Builder vs. JF Technology 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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