Correlation Between Intellian Technologies and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both Intellian Technologies and Jahwa Electron 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 Intellian Technologies and Jahwa Electron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellian Technologies and Jahwa Electron, you can compare the effects of market volatilities on Intellian Technologies and Jahwa Electron 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 Intellian Technologies with a short position of Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellian Technologies and Jahwa Electron.
Diversification Opportunities for Intellian Technologies and Jahwa Electron
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intellian and Jahwa is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intellian Technologies and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron and Intellian 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 Intellian Technologies are associated (or correlated) with Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of Intellian Technologies i.e., Intellian Technologies and Jahwa Electron go up and down completely randomly.
Pair Corralation between Intellian Technologies and Jahwa Electron
Assuming the 90 days trading horizon Intellian Technologies is expected to under-perform the Jahwa Electron. In addition to that, Intellian Technologies is 1.04 times more volatile than Jahwa Electron. It trades about -0.27 of its total potential returns per unit of risk. Jahwa Electron is currently generating about -0.1 per unit of volatility. If you would invest 1,383,000 in Jahwa Electron on September 15, 2024 and sell it today you would lose (144,000) from holding Jahwa Electron or give up 10.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellian Technologies vs. Jahwa Electron
Performance |
| Timeline |
| Intellian Technologies |
| Jahwa Electron |
Intellian Technologies and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellian Technologies and Jahwa Electron
The main advantage of trading using opposite Intellian Technologies and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellian Technologies position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| Intellian Technologies vs. Inzi Display CoLtd | Intellian Technologies vs. Sangsin Energy Display | Intellian Technologies vs. Samyoung Electronics Co | Intellian Technologies vs. Samji Electronics Co |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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