Correlation Between First Insurance and Jetway Information
Can any of the company-specific risk be diversified away by investing in both First Insurance 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 First Insurance and Jetway Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Insurance Co and Jetway Information Co, you can compare the effects of market volatilities on First Insurance 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 First Insurance with a short position of Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Insurance and Jetway Information.
Diversification Opportunities for First Insurance and Jetway Information
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Jetway is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding First Insurance Co and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information and First Insurance 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 First Insurance Co 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 First Insurance i.e., First Insurance and Jetway Information go up and down completely randomly.
Pair Corralation between First Insurance and Jetway Information
Assuming the 90 days trading horizon First Insurance Co is expected to generate 0.7 times more return on investment than Jetway Information. However, First Insurance Co is 1.43 times less risky than Jetway Information. It trades about 0.12 of its potential returns per unit of risk. Jetway Information Co is currently generating about -0.07 per unit of risk. If you would invest 2,340 in First Insurance Co on October 12, 2024 and sell it today you would earn a total of 130.00 from holding First Insurance Co or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Insurance Co vs. Jetway Information Co
Performance |
| Timeline |
| First Insurance |
| Jetway Information |
First Insurance and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Insurance and Jetway Information
The main advantage of trading using opposite First Insurance and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Insurance 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.| First Insurance vs. EnTie Commercial Bank | First Insurance vs. Union Bank of | First Insurance vs. Bank of Kaohsiung | First Insurance vs. Taiwan Business Bank |
| Jetway Information vs. Sesoda Corp | Jetway Information vs. First Insurance Co | Jetway Information vs. CTBC Financial Holding | Jetway Information vs. Dynamic Medical Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |