Correlation Between TSRC Corp and Jia Jie
Can any of the company-specific risk be diversified away by investing in both TSRC Corp and Jia Jie 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 TSRC Corp and Jia Jie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSRC Corp and Jia Jie Biomedical, you can compare the effects of market volatilities on TSRC Corp and Jia Jie 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 TSRC Corp with a short position of Jia Jie. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSRC Corp and Jia Jie.
Diversification Opportunities for TSRC Corp and Jia Jie
Weak diversification
The 3 months correlation between TSRC and Jia is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding TSRC Corp and Jia Jie Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jia Jie Biomedical and TSRC Corp 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 TSRC Corp are associated (or correlated) with Jia Jie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jia Jie Biomedical has no effect on the direction of TSRC Corp i.e., TSRC Corp and Jia Jie go up and down completely randomly.
Pair Corralation between TSRC Corp and Jia Jie
Assuming the 90 days trading horizon TSRC Corp is expected to under-perform the Jia Jie. But the stock apears to be less risky and, when comparing its historical volatility, TSRC Corp is 1.77 times less risky than Jia Jie. The stock trades about -0.58 of its potential returns per unit of risk. The Jia Jie Biomedical is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 2,400 in Jia Jie Biomedical on September 18, 2024 and sell it today you would lose (210.00) from holding Jia Jie Biomedical or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSRC Corp vs. Jia Jie Biomedical
Performance |
| Timeline |
| TSRC Corp |
| Jia Jie Biomedical |
TSRC Corp and Jia Jie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSRC Corp and Jia Jie
The main advantage of trading using opposite TSRC Corp and Jia Jie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSRC Corp position performs unexpectedly, Jia Jie 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 Jia Jie will offset losses from the drop in Jia Jie's long position.| TSRC Corp vs. Jia Jie Biomedical | TSRC Corp vs. PChome Online | TSRC Corp vs. Easywell Biomedicals | TSRC Corp vs. Shanghai Commercial Savings |
| Jia Jie vs. Uni President Enterprises Corp | Jia Jie vs. Tingyi Holding Corp | Jia Jie vs. Lien Hwa Industrial | Jia Jie vs. Great Wall Enterprise |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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