Correlation Between Jia Jie and TUL
Can any of the company-specific risk be diversified away by investing in both Jia Jie and TUL 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 TUL 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 TUL Corporation, you can compare the effects of market volatilities on Jia Jie and TUL 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 TUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jia Jie and TUL.
Diversification Opportunities for Jia Jie and TUL
Very good diversification
The 3 months correlation between Jia and TUL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jia Jie Biomedical and TUL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUL Corporation 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 TUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUL Corporation has no effect on the direction of Jia Jie i.e., Jia Jie and TUL go up and down completely randomly.
Pair Corralation between Jia Jie and TUL
Assuming the 90 days trading horizon Jia Jie Biomedical is expected to under-perform the TUL. But the stock apears to be less risky and, when comparing its historical volatility, Jia Jie Biomedical is 1.87 times less risky than TUL. The stock trades about -0.1 of its potential returns per unit of risk. The TUL Corporation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,270 in TUL Corporation on September 5, 2024 and sell it today you would earn a total of 50.00 from holding TUL Corporation or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jia Jie Biomedical vs. TUL Corp.
Performance |
| Timeline |
| Jia Jie Biomedical |
| TUL Corporation |
Jia Jie and TUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jia Jie and TUL
The main advantage of trading using opposite Jia Jie and TUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jia Jie position performs unexpectedly, TUL 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 TUL will offset losses from the drop in TUL's long position.| Jia Jie vs. Professional Computer Technology | Jia Jie vs. China Times Publishing | Jia Jie vs. Great Computer | Jia Jie vs. Sunfar Computer Co |
| TUL vs. Min Aik Technology | TUL vs. Vate Technology Co | TUL vs. Grand Ocean Retail | TUL vs. Siward Crystal 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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