Correlation Between Ji Haw and Welldone
Can any of the company-specific risk be diversified away by investing in both Ji Haw and Welldone 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 Welldone 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 Welldone Co, you can compare the effects of market volatilities on Ji Haw and Welldone 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 Welldone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ji Haw and Welldone.
Diversification Opportunities for Ji Haw and Welldone
Very good diversification
The 3 months correlation between 3011 and Welldone is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ji Haw Industrial Co and Welldone Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welldone 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 Welldone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welldone has no effect on the direction of Ji Haw i.e., Ji Haw and Welldone go up and down completely randomly.
Pair Corralation between Ji Haw and Welldone
Assuming the 90 days trading horizon Ji Haw Industrial Co is expected to generate 1.5 times more return on investment than Welldone. However, Ji Haw is 1.5 times more volatile than Welldone Co. It trades about -0.02 of its potential returns per unit of risk. Welldone Co is currently generating about -0.07 per unit of risk. If you would invest 3,015 in Ji Haw Industrial Co on September 14, 2024 and sell it today you would lose (305.00) from holding Ji Haw Industrial Co or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ji Haw Industrial Co vs. Welldone Co
Performance |
| Timeline |
| Ji Haw Industrial |
| Welldone |
Ji Haw and Welldone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ji Haw and Welldone
The main advantage of trading using opposite Ji Haw and Welldone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ji Haw position performs unexpectedly, Welldone 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 Welldone will offset losses from the drop in Welldone's long position.| Ji Haw vs. AU Optronics | Ji Haw vs. Innolux Corp | Ji Haw vs. Ruentex Development Co | Ji Haw vs. WiseChip Semiconductor |
| Welldone vs. Asia Metal Industries | Welldone vs. Amulaire Thermal Technology | Welldone vs. Est Global Apparel | Welldone vs. Quanta Computer |
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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