Correlation Between AVerMedia Technologies and Jetway Information
Can any of the company-specific risk be diversified away by investing in both AVerMedia Technologies and Jetway Information 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 AVerMedia Technologies and Jetway Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVerMedia Technologies and Jetway Information Co, you can compare the effects of market volatilities on AVerMedia Technologies and Jetway Information 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 AVerMedia Technologies with a short position of Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVerMedia Technologies and Jetway Information.
Diversification Opportunities for AVerMedia Technologies and Jetway Information
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AVerMedia and Jetway is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AVerMedia Technologies and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information and AVerMedia 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 AVerMedia Technologies are associated (or correlated) with Jetway Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetway Information has no effect on the direction of AVerMedia Technologies i.e., AVerMedia Technologies and Jetway Information go up and down completely randomly.
Pair Corralation between AVerMedia Technologies and Jetway Information
Assuming the 90 days trading horizon AVerMedia Technologies is expected to generate 74.93 times less return on investment than Jetway Information. But when comparing it to its historical volatility, AVerMedia Technologies is 30.0 times less risky than Jetway Information. It trades about 0.04 of its potential returns per unit of risk. Jetway Information Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,687 in Jetway Information Co on October 12, 2024 and sell it today you would lose (917.00) from holding Jetway Information Co or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVerMedia Technologies vs. Jetway Information Co
Performance |
| Timeline |
| AVerMedia Technologies |
| Jetway Information |
AVerMedia Technologies and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVerMedia Technologies and Jetway Information
The main advantage of trading using opposite AVerMedia Technologies and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVerMedia Technologies position performs unexpectedly, Jetway Information 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 Jetway Information will offset losses from the drop in Jetway Information's long position.| AVerMedia Technologies vs. Ruentex Development Co | AVerMedia Technologies vs. WiseChip Semiconductor | AVerMedia Technologies vs. Leader Electronics | AVerMedia Technologies vs. CTCI Corp |
| Jetway Information vs. Gamania Digital Entertainment | Jetway Information vs. AVerMedia Technologies | Jetway Information vs. Asmedia Technology | Jetway Information vs. Advanced Wireless Semiconductor |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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