Correlation Between Green World and Jetwell Computer
Can any of the company-specific risk be diversified away by investing in both Green World and Jetwell Computer 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 Green World and Jetwell Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Jetwell Computer Co, you can compare the effects of market volatilities on Green World and Jetwell Computer 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 Green World with a short position of Jetwell Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Jetwell Computer.
Diversification Opportunities for Green World and Jetwell Computer
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Green and Jetwell is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Jetwell Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetwell Computer and Green World 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 Green World Fintech are associated (or correlated) with Jetwell Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetwell Computer has no effect on the direction of Green World i.e., Green World and Jetwell Computer go up and down completely randomly.
Pair Corralation between Green World and Jetwell Computer
Assuming the 90 days trading horizon Green World Fintech is expected to generate 18.52 times more return on investment than Jetwell Computer. However, Green World is 18.52 times more volatile than Jetwell Computer Co. It trades about 0.06 of its potential returns per unit of risk. Jetwell Computer Co is currently generating about 0.07 per unit of risk. If you would invest 4,688 in Green World Fintech on October 24, 2024 and sell it today you would earn a total of 1,722 from holding Green World Fintech or generate 36.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green World Fintech vs. Jetwell Computer Co
Performance |
| Timeline |
| Green World Fintech |
| Jetwell Computer |
Green World and Jetwell Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green World and Jetwell Computer
The main advantage of trading using opposite Green World and Jetwell Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Jetwell Computer 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 Jetwell Computer will offset losses from the drop in Jetwell Computer's long position.| Green World vs. AzureWave Technologies | Green World vs. WinMate Communication INC | Green World vs. Simplo Technology Co | Green World vs. Arbor Technology |
| Jetwell Computer vs. Gamania Digital Entertainment | Jetwell Computer vs. Zhen Ding Technology | Jetwell Computer vs. ADLINK Technology | Jetwell Computer vs. Intai Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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