Correlation Between Uwc Bhd and JF Technology
Can any of the company-specific risk be diversified away by investing in both Uwc Bhd and JF Technology 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 Uwc Bhd and JF Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwc Bhd and JF Technology BHD, you can compare the effects of market volatilities on Uwc Bhd and JF Technology 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 Uwc Bhd with a short position of JF Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwc Bhd and JF Technology.
Diversification Opportunities for Uwc Bhd and JF Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Uwc and 0146 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Uwc Bhd and JF Technology BHD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JF Technology BHD and Uwc Bhd 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 Uwc Bhd are associated (or correlated) with JF Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JF Technology BHD has no effect on the direction of Uwc Bhd i.e., Uwc Bhd and JF Technology go up and down completely randomly.
Pair Corralation between Uwc Bhd and JF Technology
Assuming the 90 days trading horizon Uwc Bhd is expected to generate 1.12 times more return on investment than JF Technology. However, Uwc Bhd is 1.12 times more volatile than JF Technology BHD. It trades about -0.04 of its potential returns per unit of risk. JF Technology BHD is currently generating about -0.08 per unit of risk. If you would invest 370.00 in Uwc Bhd on August 24, 2024 and sell it today you would lose (101.00) from holding Uwc Bhd or give up 27.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uwc Bhd vs. JF Technology BHD
Performance |
| Timeline |
| Uwc Bhd |
| JF Technology BHD |
Uwc Bhd and JF Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwc Bhd and JF Technology
The main advantage of trading using opposite Uwc Bhd and JF Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwc Bhd position performs unexpectedly, JF Technology 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 JF Technology will offset losses from the drop in JF Technology's long position.| Uwc Bhd vs. Senheng New Retail | Uwc Bhd vs. BP Plastics Holding | Uwc Bhd vs. Star Media Group | Uwc Bhd vs. Eversafe Rubber Bhd |
| JF Technology vs. Greatech Technology Bhd | JF Technology vs. Uwc Bhd | JF Technology vs. Genetec Technology Bhd | JF Technology vs. PIE Industrial Bhd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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