Correlation Between Ju Teng and TUL
Can any of the company-specific risk be diversified away by investing in both Ju Teng and TUL 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 TUL 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 TUL Corporation, you can compare the effects of market volatilities on Ju Teng and TUL 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 TUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ju Teng and TUL.
Diversification Opportunities for Ju Teng and TUL
Excellent diversification
The 3 months correlation between 9136 and TUL is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ju Teng International and TUL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUL Corporation 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 TUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUL Corporation has no effect on the direction of Ju Teng i.e., Ju Teng and TUL go up and down completely randomly.
Pair Corralation between Ju Teng and TUL
Assuming the 90 days trading horizon Ju Teng International is expected to generate 0.55 times more return on investment than TUL. However, Ju Teng International is 1.82 times less risky than TUL. It trades about -0.01 of its potential returns per unit of risk. TUL Corporation is currently generating about -0.03 per unit of risk. If you would invest 653.00 in Ju Teng International on September 12, 2024 and sell it today you would lose (51.00) from holding Ju Teng International or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ju Teng International vs. TUL Corp.
Performance |
| Timeline |
| Ju Teng International |
| TUL Corporation |
Ju Teng and TUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ju Teng and TUL
The main advantage of trading using opposite Ju Teng and TUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ju Teng position performs unexpectedly, TUL 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 TUL will offset losses from the drop in TUL'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 |
| TUL vs. Chernan Metal Industrial | TUL vs. Dimerco Data System | TUL vs. Mitake Information | TUL vs. Feng Ching Metal |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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