Correlation Between Uchi Technologies and JF Technology
Can any of the company-specific risk be diversified away by investing in both Uchi Technologies and JF Technology 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 Uchi Technologies and JF Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uchi Technologies Bhd and JF Technology BHD, you can compare the effects of market volatilities on Uchi Technologies and JF Technology 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 Uchi Technologies with a short position of JF Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uchi Technologies and JF Technology.
Diversification Opportunities for Uchi Technologies and JF Technology
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Uchi and 0146 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Uchi Technologies Bhd and JF Technology BHD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JF Technology BHD and Uchi Technologies 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 Uchi Technologies Bhd are associated (or correlated) with JF Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JF Technology BHD has no effect on the direction of Uchi Technologies i.e., Uchi Technologies and JF Technology go up and down completely randomly.
Pair Corralation between Uchi Technologies and JF Technology
Assuming the 90 days trading horizon Uchi Technologies Bhd is expected to generate 0.33 times more return on investment than JF Technology. However, Uchi Technologies Bhd is 2.99 times less risky than JF Technology. It trades about 0.22 of its potential returns per unit of risk. JF Technology BHD is currently generating about -0.27 per unit of risk. If you would invest 380.00 in Uchi Technologies Bhd on September 4, 2024 and sell it today you would earn a total of 16.00 from holding Uchi Technologies Bhd or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uchi Technologies Bhd vs. JF Technology BHD
Performance |
| Timeline |
| Uchi Technologies Bhd |
| JF Technology BHD |
Uchi Technologies and JF Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uchi Technologies and JF Technology
The main advantage of trading using opposite Uchi Technologies and JF Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uchi Technologies position performs unexpectedly, JF Technology 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 JF Technology will offset losses from the drop in JF Technology's long position.| Uchi Technologies vs. BP Plastics Holding | Uchi Technologies vs. Binasat Communications Bhd | Uchi Technologies vs. Silver Ridge Holdings | Uchi Technologies vs. Cosmos Technology International |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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