Correlation Between Ju Teng and Ablerex Electronics
Can any of the company-specific risk be diversified away by investing in both Ju Teng and Ablerex Electronics 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 Ablerex Electronics 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 Ablerex Electronics Co, you can compare the effects of market volatilities on Ju Teng and Ablerex Electronics 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 Ablerex Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ju Teng and Ablerex Electronics.
Diversification Opportunities for Ju Teng and Ablerex Electronics
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 9136 and Ablerex is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ju Teng International and Ablerex Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ablerex Electronics 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 Ablerex Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ablerex Electronics has no effect on the direction of Ju Teng i.e., Ju Teng and Ablerex Electronics go up and down completely randomly.
Pair Corralation between Ju Teng and Ablerex Electronics
Assuming the 90 days trading horizon Ju Teng International is expected to under-perform the Ablerex Electronics. In addition to that, Ju Teng is 1.06 times more volatile than Ablerex Electronics Co. It trades about -0.01 of its total potential returns per unit of risk. Ablerex Electronics Co is currently generating about 0.02 per unit of volatility. If you would invest 4,675 in Ablerex Electronics Co on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Ablerex Electronics Co or generate 2.14% 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. Ablerex Electronics Co
Performance |
| Timeline |
| Ju Teng International |
| Ablerex Electronics |
Ju Teng and Ablerex Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ju Teng and Ablerex Electronics
The main advantage of trading using opposite Ju Teng and Ablerex Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ju Teng position performs unexpectedly, Ablerex Electronics 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 Ablerex Electronics will offset losses from the drop in Ablerex Electronics' 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 |
| Ablerex Electronics vs. Hon Hai Precision | Ablerex Electronics vs. Delta Electronics | Ablerex Electronics vs. LARGAN Precision Co | Ablerex Electronics vs. AU Optronics |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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