Correlation Between Jetway Information and Mega Financial
Can any of the company-specific risk be diversified away by investing in both Jetway Information and Mega Financial 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 Jetway Information and Mega Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jetway Information Co and Mega Financial Holding, you can compare the effects of market volatilities on Jetway Information and Mega Financial 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 Jetway Information with a short position of Mega Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jetway Information and Mega Financial.
Diversification Opportunities for Jetway Information and Mega Financial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jetway and Mega is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jetway Information Co and Mega Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Financial Holding and Jetway Information 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 Jetway Information Co are associated (or correlated) with Mega Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Financial Holding has no effect on the direction of Jetway Information i.e., Jetway Information and Mega Financial go up and down completely randomly.
Pair Corralation between Jetway Information and Mega Financial
Assuming the 90 days trading horizon Jetway Information Co is expected to under-perform the Mega Financial. In addition to that, Jetway Information is 3.34 times more volatile than Mega Financial Holding. It trades about -0.31 of its total potential returns per unit of risk. Mega Financial Holding is currently generating about -0.03 per unit of volatility. If you would invest 3,885 in Mega Financial Holding on October 26, 2024 and sell it today you would lose (15.00) from holding Mega Financial Holding or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jetway Information Co vs. Mega Financial Holding
Performance |
| Timeline |
| Jetway Information |
| Mega Financial Holding |
Jetway Information and Mega Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jetway Information and Mega Financial
The main advantage of trading using opposite Jetway Information and Mega Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jetway Information position performs unexpectedly, Mega Financial 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 Mega Financial will offset losses from the drop in Mega Financial's long position.| Jetway Information vs. Shanghai Commercial Savings | Jetway Information vs. Zhen Ding Technology | Jetway Information vs. Daxin Materials Corp | Jetway Information vs. Microelectronics Technology |
| Mega Financial vs. CTBC Financial Holding | Mega Financial vs. Fubon Financial Holding | Mega Financial vs. First Financial Holding | Mega Financial vs. Cathay Financial Holding |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |