Correlation Between Jetway Information and Elite Semiconductor
Can any of the company-specific risk be diversified away by investing in both Jetway Information and Elite Semiconductor 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 Elite Semiconductor 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 Elite Semiconductor Memory, you can compare the effects of market volatilities on Jetway Information and Elite Semiconductor 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 Elite Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jetway Information and Elite Semiconductor.
Diversification Opportunities for Jetway Information and Elite Semiconductor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jetway and Elite is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jetway Information Co and Elite Semiconductor Memory in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Semiconductor 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 Elite Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Semiconductor has no effect on the direction of Jetway Information i.e., Jetway Information and Elite Semiconductor go up and down completely randomly.
Pair Corralation between Jetway Information and Elite Semiconductor
Assuming the 90 days trading horizon Jetway Information Co is expected to under-perform the Elite Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jetway Information Co is 1.03 times less risky than Elite Semiconductor. The stock trades about -0.32 of its potential returns per unit of risk. The Elite Semiconductor Memory is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 6,410 in Elite Semiconductor Memory on October 28, 2024 and sell it today you would lose (350.00) from holding Elite Semiconductor Memory or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jetway Information Co vs. Elite Semiconductor Memory
Performance |
| Timeline |
| Jetway Information |
| Elite Semiconductor |
Jetway Information and Elite Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jetway Information and Elite Semiconductor
The main advantage of trading using opposite Jetway Information and Elite Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jetway Information position performs unexpectedly, Elite Semiconductor 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 Elite Semiconductor will offset losses from the drop in Elite Semiconductor's long position.| Jetway Information vs. Unimicron Technology Corp | Jetway Information vs. Kinsus Interconnect Technology | Jetway Information vs. Novatek Microelectronics Corp | Jetway Information vs. Delta Electronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |