Correlation Between Jia Jie and TSRC Corp
Can any of the company-specific risk be diversified away by investing in both Jia Jie and TSRC Corp 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 Jia Jie and TSRC Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jia Jie Biomedical and TSRC Corp, you can compare the effects of market volatilities on Jia Jie and TSRC Corp 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 Jia Jie with a short position of TSRC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jia Jie and TSRC Corp.
Diversification Opportunities for Jia Jie and TSRC Corp
Modest diversification
The 3 months correlation between Jia and TSRC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jia Jie Biomedical and TSRC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSRC Corp and Jia Jie 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 Jia Jie Biomedical are associated (or correlated) with TSRC Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSRC Corp has no effect on the direction of Jia Jie i.e., Jia Jie and TSRC Corp go up and down completely randomly.
Pair Corralation between Jia Jie and TSRC Corp
Assuming the 90 days trading horizon Jia Jie Biomedical is expected to generate 1.77 times more return on investment than TSRC Corp. However, Jia Jie is 1.77 times more volatile than TSRC Corp. It trades about -0.23 of its potential returns per unit of risk. TSRC Corp is currently generating about -0.58 per unit of risk. If you would invest 2,400 in Jia Jie Biomedical on September 19, 2024 and sell it today you would lose (210.00) from holding Jia Jie Biomedical or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jia Jie Biomedical vs. TSRC Corp
Performance |
| Timeline |
| Jia Jie Biomedical |
| TSRC Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jia Jie and TSRC Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jia Jie and TSRC Corp
The main advantage of trading using opposite Jia Jie and TSRC Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jia Jie position performs unexpectedly, TSRC Corp 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 TSRC Corp will offset losses from the drop in TSRC Corp's long position.| Jia Jie vs. Nankang Rubber Tire | Jia Jie vs. General Plastic Industrial | Jia Jie vs. Tigerair Taiwan Co | Jia Jie vs. Formosa International Hotels |
| TSRC Corp vs. Tradetool Auto Co | TSRC Corp vs. Union Bank of | TSRC Corp vs. Shinkong Insurance Co | TSRC Corp vs. Trade Van Information Services |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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