Correlation Between Elitegroup Computer and Jetwell Computer
Can any of the company-specific risk be diversified away by investing in both Elitegroup Computer and Jetwell Computer 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 Elitegroup Computer and Jetwell Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elitegroup Computer Systems and Jetwell Computer Co, you can compare the effects of market volatilities on Elitegroup Computer and Jetwell Computer 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 Elitegroup Computer with a short position of Jetwell Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elitegroup Computer and Jetwell Computer.
Diversification Opportunities for Elitegroup Computer and Jetwell Computer
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elitegroup and Jetwell is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Elitegroup Computer Systems and Jetwell Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetwell Computer and Elitegroup Computer 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 Elitegroup Computer Systems are associated (or correlated) with Jetwell Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetwell Computer has no effect on the direction of Elitegroup Computer i.e., Elitegroup Computer and Jetwell Computer go up and down completely randomly.
Pair Corralation between Elitegroup Computer and Jetwell Computer
Assuming the 90 days trading horizon Elitegroup Computer Systems is expected to generate 0.47 times more return on investment than Jetwell Computer. However, Elitegroup Computer Systems is 2.12 times less risky than Jetwell Computer. It trades about 0.02 of its potential returns per unit of risk. Jetwell Computer Co is currently generating about -0.04 per unit of risk. If you would invest 2,200 in Elitegroup Computer Systems on October 25, 2024 and sell it today you would earn a total of 10.00 from holding Elitegroup Computer Systems or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elitegroup Computer Systems vs. Jetwell Computer Co
Performance |
| Timeline |
| Elitegroup Computer |
| Jetwell Computer |
Elitegroup Computer and Jetwell Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elitegroup Computer and Jetwell Computer
The main advantage of trading using opposite Elitegroup Computer and Jetwell Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elitegroup Computer position performs unexpectedly, Jetwell Computer 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 Jetwell Computer will offset losses from the drop in Jetwell Computer's long position.| Elitegroup Computer vs. Unimicron Technology Corp | Elitegroup Computer vs. Kinsus Interconnect Technology | Elitegroup Computer vs. Novatek Microelectronics Corp | Elitegroup Computer vs. Delta Electronics |
| Jetwell Computer vs. Compal Broadband Networks | Jetwell Computer vs. Kao Fong Machinery | Jetwell Computer vs. Dawushan Farm Tech | Jetwell Computer vs. New Asia Construction |
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.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |