Correlation Between Digital China and Ju Teng
Can any of the company-specific risk be diversified away by investing in both Digital China and Ju Teng 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 Digital China and Ju Teng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital China Holdings and Ju Teng International, you can compare the effects of market volatilities on Digital China and Ju Teng 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 Digital China with a short position of Ju Teng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and Ju Teng.
Diversification Opportunities for Digital China and Ju Teng
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Digital and 9136 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Digital China Holdings and Ju Teng International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ju Teng International and Digital China 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 Digital China Holdings are associated (or correlated) with Ju Teng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ju Teng International has no effect on the direction of Digital China i.e., Digital China and Ju Teng go up and down completely randomly.
Pair Corralation between Digital China and Ju Teng
Assuming the 90 days trading horizon Digital China Holdings is expected to generate 1.48 times more return on investment than Ju Teng. However, Digital China is 1.48 times more volatile than Ju Teng International. It trades about 0.01 of its potential returns per unit of risk. Ju Teng International is currently generating about 0.0 per unit of risk. If you would invest 724.00 in Digital China Holdings on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Digital China Holdings or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital China Holdings vs. Ju Teng International
Performance |
| Timeline |
| Digital China Holdings |
| Ju Teng International |
Digital China and Ju Teng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and Ju Teng
The main advantage of trading using opposite Digital China and Ju Teng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China position performs unexpectedly, Ju Teng 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 Ju Teng will offset losses from the drop in Ju Teng's long position.| Digital China vs. Ju Teng International | Digital China vs. Neo Neon Holdings Limited | Digital China vs. Medtecs International | Digital China vs. Vietnam Manufacturing and |
| Ju Teng vs. Cal Comp Electronics Public | Ju Teng vs. Catcher Technology Co | Ju Teng vs. Darfon Electronics Corp | Ju Teng vs. Digital China Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |