Correlation Between Jetway Information and Chi Sheng
Can any of the company-specific risk be diversified away by investing in both Jetway Information and Chi Sheng 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 Chi Sheng 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 Chi Sheng Chemical, you can compare the effects of market volatilities on Jetway Information and Chi Sheng 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 Chi Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jetway Information and Chi Sheng.
Diversification Opportunities for Jetway Information and Chi Sheng
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jetway and Chi is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jetway Information Co and Chi Sheng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chi Sheng Chemical 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 Chi Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chi Sheng Chemical has no effect on the direction of Jetway Information i.e., Jetway Information and Chi Sheng go up and down completely randomly.
Pair Corralation between Jetway Information and Chi Sheng
Assuming the 90 days trading horizon Jetway Information Co is expected to generate 60.29 times more return on investment than Chi Sheng. However, Jetway Information is 60.29 times more volatile than Chi Sheng Chemical. It trades about 0.07 of its potential returns per unit of risk. Chi Sheng Chemical is currently generating about 0.02 per unit of risk. If you would invest 5,113 in Jetway Information Co on October 21, 2024 and sell it today you would lose (788.00) from holding Jetway Information Co or give up 15.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jetway Information Co vs. Chi Sheng Chemical
Performance |
| Timeline |
| Jetway Information |
| Chi Sheng Chemical |
Jetway Information and Chi Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jetway Information and Chi Sheng
The main advantage of trading using opposite Jetway Information and Chi Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jetway Information position performs unexpectedly, Chi Sheng 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 Chi Sheng will offset losses from the drop in Chi Sheng's long position.| Jetway Information vs. Realtek Semiconductor Corp | Jetway Information vs. Feng Ching Metal | Jetway Information vs. WiseChip Semiconductor | Jetway Information vs. Davicom Semiconductor |
| Chi Sheng vs. K Way Information | Chi Sheng vs. WIN Semiconductors | Chi Sheng vs. Jetway Information Co | Chi Sheng vs. Syntek Semiconductor Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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