Correlation Between Pontex Polyblend and Jetwell Computer
Can any of the company-specific risk be diversified away by investing in both Pontex Polyblend 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 Pontex Polyblend and Jetwell Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pontex Polyblend CoLtd and Jetwell Computer Co, you can compare the effects of market volatilities on Pontex Polyblend 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 Pontex Polyblend with a short position of Jetwell Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pontex Polyblend and Jetwell Computer.
Diversification Opportunities for Pontex Polyblend and Jetwell Computer
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pontex and Jetwell is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pontex Polyblend CoLtd and Jetwell Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetwell Computer and Pontex Polyblend 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 Pontex Polyblend CoLtd 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 Pontex Polyblend i.e., Pontex Polyblend and Jetwell Computer go up and down completely randomly.
Pair Corralation between Pontex Polyblend and Jetwell Computer
Assuming the 90 days trading horizon Pontex Polyblend CoLtd is expected to generate 1.19 times more return on investment than Jetwell Computer. However, Pontex Polyblend is 1.19 times more volatile than Jetwell Computer Co. It trades about 0.15 of its potential returns per unit of risk. Jetwell Computer Co is currently generating about -0.11 per unit of risk. If you would invest 1,700 in Pontex Polyblend CoLtd on September 2, 2024 and sell it today you would earn a total of 500.00 from holding Pontex Polyblend CoLtd or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pontex Polyblend CoLtd vs. Jetwell Computer Co
Performance |
| Timeline |
| Pontex Polyblend CoLtd |
| Jetwell Computer |
Pontex Polyblend and Jetwell Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pontex Polyblend and Jetwell Computer
The main advantage of trading using opposite Pontex Polyblend and Jetwell Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pontex Polyblend 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.| Pontex Polyblend vs. Cheng Shin Rubber | Pontex Polyblend vs. Nankang Rubber Tire | Pontex Polyblend vs. USI Corp | Pontex Polyblend vs. Asia Polymer Corp |
| Jetwell Computer vs. Acer E Enabling Service | Jetwell Computer vs. Green World Fintech | Jetwell Computer vs. Syscom Computer Engineering |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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