Correlation Between Jean and Min Aik
Can any of the company-specific risk be diversified away by investing in both Jean and Min Aik 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 Jean and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jean Co and Min Aik Technology, you can compare the effects of market volatilities on Jean and Min Aik 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 Jean with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jean and Min Aik.
Diversification Opportunities for Jean and Min Aik
Pay attention - limited upside
The 3 months correlation between Jean and Min is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jean Co and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology and Jean 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 Jean Co are associated (or correlated) with Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of Jean i.e., Jean and Min Aik go up and down completely randomly.
Pair Corralation between Jean and Min Aik
Assuming the 90 days trading horizon Jean Co is expected to generate 0.97 times more return on investment than Min Aik. However, Jean Co is 1.04 times less risky than Min Aik. It trades about 0.07 of its potential returns per unit of risk. Min Aik Technology is currently generating about 0.04 per unit of risk. If you would invest 1,305 in Jean Co on October 13, 2024 and sell it today you would earn a total of 1,195 from holding Jean Co or generate 91.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jean Co vs. Min Aik Technology
Performance |
| Timeline |
| Jean |
| Min Aik Technology |
Jean and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jean and Min Aik
The main advantage of trading using opposite Jean and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jean position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik's long position.| Jean vs. Shuttle | Jean vs. Amtran Technology Co | Jean vs. AVerMedia Technologies | Jean vs. Gigastorage Corp |
| Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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