Correlation Between Ji Haw and Chenming Mold
Can any of the company-specific risk be diversified away by investing in both Ji Haw and Chenming Mold 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 Ji Haw and Chenming Mold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ji Haw Industrial Co and Chenming Mold Industrial, you can compare the effects of market volatilities on Ji Haw and Chenming Mold 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 Ji Haw with a short position of Chenming Mold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ji Haw and Chenming Mold.
Diversification Opportunities for Ji Haw and Chenming Mold
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 3011 and Chenming is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ji Haw Industrial Co and Chenming Mold Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenming Mold Industrial and Ji Haw 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 Ji Haw Industrial Co are associated (or correlated) with Chenming Mold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenming Mold Industrial has no effect on the direction of Ji Haw i.e., Ji Haw and Chenming Mold go up and down completely randomly.
Pair Corralation between Ji Haw and Chenming Mold
Assuming the 90 days trading horizon Ji Haw Industrial Co is expected to under-perform the Chenming Mold. But the stock apears to be less risky and, when comparing its historical volatility, Ji Haw Industrial Co is 1.68 times less risky than Chenming Mold. The stock trades about -0.09 of its potential returns per unit of risk. The Chenming Mold Industrial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,070 in Chenming Mold Industrial on October 25, 2024 and sell it today you would earn a total of 8,180 from holding Chenming Mold Industrial or generate 134.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ji Haw Industrial Co vs. Chenming Mold Industrial
Performance |
| Timeline |
| Ji Haw Industrial |
| Chenming Mold Industrial |
Ji Haw and Chenming Mold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ji Haw and Chenming Mold
The main advantage of trading using opposite Ji Haw and Chenming Mold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ji Haw position performs unexpectedly, Chenming Mold 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 Chenming Mold will offset losses from the drop in Chenming Mold's long position.| Ji Haw vs. Unimicron Technology Corp | Ji Haw vs. Kinsus Interconnect Technology | Ji Haw vs. Novatek Microelectronics Corp | Ji Haw vs. Delta Electronics |
| Chenming Mold vs. Clevo Co | Chenming Mold vs. Zinwell | Chenming Mold vs. Min Aik Technology | Chenming Mold vs. Promise 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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