Correlation Between Intai Technology and Jetwell Computer
Can any of the company-specific risk be diversified away by investing in both Intai Technology and Jetwell Computer 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 Intai Technology and Jetwell Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intai Technology and Jetwell Computer Co, you can compare the effects of market volatilities on Intai Technology and Jetwell Computer 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 Intai Technology with a short position of Jetwell Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and Jetwell Computer.
Diversification Opportunities for Intai Technology and Jetwell Computer
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intai and Jetwell is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and Jetwell Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetwell Computer and Intai 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 Intai Technology are associated (or correlated) with Jetwell Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetwell Computer has no effect on the direction of Intai Technology i.e., Intai Technology and Jetwell Computer go up and down completely randomly.
Pair Corralation between Intai Technology and Jetwell Computer
Assuming the 90 days trading horizon Intai Technology is expected to under-perform the Jetwell Computer. But the stock apears to be less risky and, when comparing its historical volatility, Intai Technology is 4.01 times less risky than Jetwell Computer. The stock trades about -0.04 of its potential returns per unit of risk. The Jetwell Computer Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,700 in Jetwell Computer Co on November 4, 2024 and sell it today you would earn a total of 6,250 from holding Jetwell Computer Co or generate 64.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intai Technology vs. Jetwell Computer Co
Performance |
| Timeline |
| Intai Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jetwell Computer |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Intai Technology and Jetwell Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intai Technology and Jetwell Computer
The main advantage of trading using opposite Intai Technology and Jetwell Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intai Technology position performs unexpectedly, Jetwell Computer 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 Jetwell Computer will offset losses from the drop in Jetwell Computer's long position.The idea behind Intai Technology and Jetwell Computer Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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