Correlation Between Data International and Pan Jit
Can any of the company-specific risk be diversified away by investing in both Data International and Pan Jit 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 Data International and Pan Jit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data International Co and Pan Jit International, you can compare the effects of market volatilities on Data International and Pan Jit 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 Data International with a short position of Pan Jit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data International and Pan Jit.
Diversification Opportunities for Data International and Pan Jit
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Data and Pan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Data International Co and Pan Jit International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Jit International and Data International 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 Data International Co are associated (or correlated) with Pan Jit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Jit International has no effect on the direction of Data International i.e., Data International and Pan Jit go up and down completely randomly.
Pair Corralation between Data International and Pan Jit
Assuming the 90 days trading horizon Data International Co is expected to under-perform the Pan Jit. In addition to that, Data International is 2.81 times more volatile than Pan Jit International. It trades about -0.21 of its total potential returns per unit of risk. Pan Jit International is currently generating about -0.15 per unit of volatility. If you would invest 5,270 in Pan Jit International on October 26, 2024 and sell it today you would lose (460.00) from holding Pan Jit International or give up 8.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data International Co vs. Pan Jit International
Performance |
| Timeline |
| Data International |
| Pan Jit International |
Data International and Pan Jit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data International and Pan Jit
The main advantage of trading using opposite Data International and Pan Jit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data International position performs unexpectedly, Pan Jit 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 Pan Jit will offset losses from the drop in Pan Jit's long position.| Data International vs. Trade Van Information Services | Data International vs. eCloudvalley Digital Technology | Data International vs. BRIM Biotechnology | Data International vs. Fubon Taiwan Technology |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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