Correlation Between EMemory Technology and Joinsoon Electronics
Can any of the company-specific risk be diversified away by investing in both EMemory Technology and Joinsoon Electronics 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 EMemory Technology and Joinsoon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMemory Technology and Joinsoon Electronics MFG, you can compare the effects of market volatilities on EMemory Technology and Joinsoon Electronics 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 EMemory Technology with a short position of Joinsoon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMemory Technology and Joinsoon Electronics.
Diversification Opportunities for EMemory Technology and Joinsoon Electronics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EMemory and Joinsoon is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding eMemory Technology and Joinsoon Electronics MFG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joinsoon Electronics MFG and EMemory Technology 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 eMemory Technology are associated (or correlated) with Joinsoon Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joinsoon Electronics MFG has no effect on the direction of EMemory Technology i.e., EMemory Technology and Joinsoon Electronics go up and down completely randomly.
Pair Corralation between EMemory Technology and Joinsoon Electronics
Assuming the 90 days trading horizon eMemory Technology is expected to generate 1.41 times more return on investment than Joinsoon Electronics. However, EMemory Technology is 1.41 times more volatile than Joinsoon Electronics MFG. It trades about 0.06 of its potential returns per unit of risk. Joinsoon Electronics MFG is currently generating about 0.0 per unit of risk. If you would invest 142,108 in eMemory Technology on August 29, 2024 and sell it today you would earn a total of 148,892 from holding eMemory Technology or generate 104.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
eMemory Technology vs. Joinsoon Electronics MFG
Performance |
| Timeline |
| eMemory Technology |
| Joinsoon Electronics MFG |
EMemory Technology and Joinsoon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMemory Technology and Joinsoon Electronics
The main advantage of trading using opposite EMemory Technology and Joinsoon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMemory Technology position performs unexpectedly, Joinsoon Electronics 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 Joinsoon Electronics will offset losses from the drop in Joinsoon Electronics' long position.| EMemory Technology vs. Global Unichip Corp | EMemory Technology vs. Asmedia Technology | EMemory Technology vs. Unimicron Technology Corp | EMemory Technology vs. Novatek Microelectronics Corp |
| Joinsoon Electronics vs. First Insurance Co | Joinsoon Electronics vs. Sinopac Financial Holdings | Joinsoon Electronics vs. APEX International Financial | Joinsoon Electronics vs. C Media Electronics |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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