Correlation Between Jia Jie and Sysgration
Can any of the company-specific risk be diversified away by investing in both Jia Jie and Sysgration 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 Sysgration 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 Sysgration, you can compare the effects of market volatilities on Jia Jie and Sysgration 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 Sysgration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jia Jie and Sysgration.
Diversification Opportunities for Jia Jie and Sysgration
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jia and Sysgration is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jia Jie Biomedical and Sysgration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysgration 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 Sysgration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysgration has no effect on the direction of Jia Jie i.e., Jia Jie and Sysgration go up and down completely randomly.
Pair Corralation between Jia Jie and Sysgration
Assuming the 90 days trading horizon Jia Jie Biomedical is expected to generate 1.07 times more return on investment than Sysgration. However, Jia Jie is 1.07 times more volatile than Sysgration. It trades about 0.05 of its potential returns per unit of risk. Sysgration is currently generating about 0.01 per unit of risk. If you would invest 1,447 in Jia Jie Biomedical on September 13, 2024 and sell it today you would earn a total of 823.00 from holding Jia Jie Biomedical or generate 56.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jia Jie Biomedical vs. Sysgration
Performance |
| Timeline |
| Jia Jie Biomedical |
| Sysgration |
Jia Jie and Sysgration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jia Jie and Sysgration
The main advantage of trading using opposite Jia Jie and Sysgration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jia Jie position performs unexpectedly, Sysgration 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 Sysgration will offset losses from the drop in Sysgration's long position.| Jia Jie vs. Uni President Enterprises Corp | Jia Jie vs. Tingyi Holding Corp | Jia Jie vs. Lien Hwa Industrial | Jia Jie vs. Great Wall Enterprise |
| Sysgration vs. Integrated Service Technology | Sysgration vs. ASE Industrial Holding | Sysgration vs. eMemory Technology | Sysgration vs. Ruentex Development Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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