Correlation Between Asmedia Technology and Jetway Information
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology 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 Asmedia Technology and Jetway Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Jetway Information Co, you can compare the effects of market volatilities on Asmedia Technology 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 Asmedia Technology with a short position of Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Jetway Information.
Diversification Opportunities for Asmedia Technology and Jetway Information
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asmedia and Jetway is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information and Asmedia 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 Asmedia Technology 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 Asmedia Technology i.e., Asmedia Technology and Jetway Information go up and down completely randomly.
Pair Corralation between Asmedia Technology and Jetway Information
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 571.48 times less return on investment than Jetway Information. But when comparing it to its historical volatility, Asmedia Technology is 27.73 times less risky than Jetway Information. It trades about 0.0 of its potential returns per unit of risk. Jetway Information Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,687 in Jetway Information Co on October 12, 2024 and sell it today you would lose (917.00) from holding Jetway Information Co or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. Jetway Information Co
Performance |
| Timeline |
| Asmedia Technology |
| Jetway Information |
Asmedia Technology and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Jetway Information
The main advantage of trading using opposite Asmedia Technology and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology 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.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| Jetway Information vs. Gamania Digital Entertainment | Jetway Information vs. AVerMedia Technologies | Jetway Information vs. Asmedia Technology | Jetway Information vs. Advanced Wireless Semiconductor |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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