Correlation Between AVer Information and Jetway Information
Can any of the company-specific risk be diversified away by investing in both AVer Information 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 AVer Information and Jetway Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVer Information and Jetway Information Co, you can compare the effects of market volatilities on AVer Information 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 AVer Information with a short position of Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVer Information and Jetway Information.
Diversification Opportunities for AVer Information and Jetway Information
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVer and Jetway is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AVer Information and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information and AVer Information 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 AVer Information 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 AVer Information i.e., AVer Information and Jetway Information go up and down completely randomly.
Pair Corralation between AVer Information and Jetway Information
Assuming the 90 days trading horizon AVer Information is expected to generate 0.63 times more return on investment than Jetway Information. However, AVer Information is 1.59 times less risky than Jetway Information. It trades about -0.33 of its potential returns per unit of risk. Jetway Information Co is currently generating about -0.31 per unit of risk. If you would invest 4,440 in AVer Information on October 26, 2024 and sell it today you would lose (400.00) from holding AVer Information or give up 9.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVer Information vs. Jetway Information Co
Performance |
| Timeline |
| AVer Information |
| Jetway Information |
AVer Information and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVer Information and Jetway Information
The main advantage of trading using opposite AVer Information and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVer Information 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.| AVer Information vs. Elite Semiconductor Memory | AVer Information vs. PChome Online | AVer Information vs. WiseChip Semiconductor | AVer Information vs. Syntek Semiconductor Co |
| Jetway Information vs. Shanghai Commercial Savings | Jetway Information vs. Zhen Ding Technology | Jetway Information vs. Daxin Materials Corp | Jetway Information vs. Microelectronics 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |