Correlation Between JF Technology and Press Metal
Can any of the company-specific risk be diversified away by investing in both JF Technology and Press Metal 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 Press Metal 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 Press Metal Bhd, you can compare the effects of market volatilities on JF Technology and Press Metal 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 Press Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and Press Metal.
Diversification Opportunities for JF Technology and Press Metal
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0146 and Press is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology BHD and Press Metal Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Press Metal 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 Press Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Press Metal Bhd has no effect on the direction of JF Technology i.e., JF Technology and Press Metal go up and down completely randomly.
Pair Corralation between JF Technology and Press Metal
Assuming the 90 days trading horizon JF Technology BHD is expected to under-perform the Press Metal. In addition to that, JF Technology is 1.22 times more volatile than Press Metal Bhd. It trades about -0.16 of its total potential returns per unit of risk. Press Metal Bhd is currently generating about -0.06 per unit of volatility. If you would invest 513.00 in Press Metal Bhd on August 29, 2024 and sell it today you would lose (43.00) from holding Press Metal Bhd or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JF Technology BHD vs. Press Metal Bhd
Performance |
| Timeline |
| JF Technology BHD |
| Press Metal Bhd |
JF Technology and Press Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JF Technology and Press Metal
The main advantage of trading using opposite JF Technology and Press Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology position performs unexpectedly, Press Metal 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 Press Metal will offset losses from the drop in Press Metal's long position.| JF Technology vs. Minetech Resources Bhd | JF Technology vs. Senheng New Retail | JF Technology vs. PIE Industrial Bhd | JF Technology vs. ONETECH SOLUTIONS HOLDINGS |
| Press Metal vs. Sunzen Biotech Bhd | Press Metal vs. Shangri La Hotels | Press Metal vs. Magni Tech Industries | Press Metal vs. Duopharma Biotech 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |