Correlation Between MClean Technologies and JF Technology
Can any of the company-specific risk be diversified away by investing in both MClean Technologies and JF Technology 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 MClean Technologies and JF Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MClean Technologies Bhd and JF Technology BHD, you can compare the effects of market volatilities on MClean Technologies and JF Technology 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 MClean Technologies with a short position of JF Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MClean Technologies and JF Technology.
Diversification Opportunities for MClean Technologies and JF Technology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MClean and 0146 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding MClean Technologies Bhd and JF Technology BHD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JF Technology BHD and MClean Technologies 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 MClean Technologies Bhd are associated (or correlated) with JF Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JF Technology BHD has no effect on the direction of MClean Technologies i.e., MClean Technologies and JF Technology go up and down completely randomly.
Pair Corralation between MClean Technologies and JF Technology
Assuming the 90 days trading horizon MClean Technologies Bhd is expected to generate 2.99 times more return on investment than JF Technology. However, MClean Technologies is 2.99 times more volatile than JF Technology BHD. It trades about 0.06 of its potential returns per unit of risk. JF Technology BHD is currently generating about -0.08 per unit of risk. If you would invest 15.00 in MClean Technologies Bhd on August 29, 2024 and sell it today you would earn a total of 6.00 from holding MClean Technologies Bhd or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MClean Technologies Bhd vs. JF Technology BHD
Performance |
| Timeline |
| MClean Technologies Bhd |
| JF Technology BHD |
MClean Technologies and JF Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MClean Technologies and JF Technology
The main advantage of trading using opposite MClean Technologies and JF Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MClean Technologies position performs unexpectedly, JF Technology 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 JF Technology will offset losses from the drop in JF Technology's long position.| MClean Technologies vs. Computer Forms Bhd | MClean Technologies vs. Tex Cycle Technology | MClean Technologies vs. Minetech Resources Bhd | MClean Technologies vs. Sunzen Biotech Bhd |
| JF Technology vs. Minetech Resources Bhd | JF Technology vs. Senheng New Retail | JF Technology vs. PIE Industrial Bhd | JF Technology vs. ONETECH SOLUTIONS HOLDINGS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |