Correlation Between Pan Jit and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both Pan Jit and Amtran Technology 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 Pan Jit and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan Jit International and Amtran Technology Co, you can compare the effects of market volatilities on Pan Jit and Amtran Technology 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 Pan Jit with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Jit and Amtran Technology.
Diversification Opportunities for Pan Jit and Amtran Technology
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pan and Amtran is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pan Jit International and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and Pan Jit 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 Pan Jit International are associated (or correlated) with Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of Pan Jit i.e., Pan Jit and Amtran Technology go up and down completely randomly.
Pair Corralation between Pan Jit and Amtran Technology
Assuming the 90 days trading horizon Pan Jit International is expected to under-perform the Amtran Technology. In addition to that, Pan Jit is 1.27 times more volatile than Amtran Technology Co. It trades about -0.18 of its total potential returns per unit of risk. Amtran Technology Co is currently generating about -0.15 per unit of volatility. If you would invest 2,175 in Amtran Technology Co on August 27, 2024 and sell it today you would lose (125.00) from holding Amtran Technology Co or give up 5.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pan Jit International vs. Amtran Technology Co
Performance |
| Timeline |
| Pan Jit International |
| Amtran Technology |
Pan Jit and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Jit and Amtran Technology
The main advantage of trading using opposite Pan Jit and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Jit position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| Pan Jit vs. Elan Microelectronics Corp | Pan Jit vs. Walsin Technology Corp | Pan Jit vs. Unimicron Technology Corp | Pan Jit vs. Visual Photonics Epitaxy |
| Amtran Technology vs. United Radiant Technology | Amtran Technology vs. V Tac Technology Co | Amtran Technology vs. Arbor Technology | Amtran Technology vs. Voltronic Power Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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