Correlation Between Ju Teng and Gordon Auto
Can any of the company-specific risk be diversified away by investing in both Ju Teng and Gordon Auto 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 Ju Teng and Gordon Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ju Teng International and Gordon Auto Body, you can compare the effects of market volatilities on Ju Teng and Gordon Auto 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 Ju Teng with a short position of Gordon Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ju Teng and Gordon Auto.
Diversification Opportunities for Ju Teng and Gordon Auto
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 9136 and Gordon is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ju Teng International and Gordon Auto Body in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gordon Auto Body and Ju Teng 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 Ju Teng International are associated (or correlated) with Gordon Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gordon Auto Body has no effect on the direction of Ju Teng i.e., Ju Teng and Gordon Auto go up and down completely randomly.
Pair Corralation between Ju Teng and Gordon Auto
Assuming the 90 days trading horizon Ju Teng International is expected to under-perform the Gordon Auto. But the stock apears to be less risky and, when comparing its historical volatility, Ju Teng International is 3.41 times less risky than Gordon Auto. The stock trades about -0.15 of its potential returns per unit of risk. The Gordon Auto Body is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,180 in Gordon Auto Body on September 12, 2024 and sell it today you would earn a total of 755.00 from holding Gordon Auto Body or generate 23.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ju Teng International vs. Gordon Auto Body
Performance |
| Timeline |
| Ju Teng International |
| Gordon Auto Body |
Ju Teng and Gordon Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ju Teng and Gordon Auto
The main advantage of trading using opposite Ju Teng and Gordon Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ju Teng position performs unexpectedly, Gordon Auto 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 Gordon Auto will offset losses from the drop in Gordon Auto's long position.| 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 |
| Gordon Auto vs. Kaulin Mfg | Gordon Auto vs. Tex Ray Industrial Co | Gordon Auto vs. De Licacy Industrial | Gordon Auto vs. Kwong Fong Industries |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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