Correlation Between Ju Teng and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Ju Teng and Aker Technology 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 Aker Technology 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 Aker Technology Co, you can compare the effects of market volatilities on Ju Teng and Aker Technology 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 Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ju Teng and Aker Technology.
Diversification Opportunities for Ju Teng and Aker Technology
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 9136 and Aker is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ju Teng International and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology 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 Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Ju Teng i.e., Ju Teng and Aker Technology go up and down completely randomly.
Pair Corralation between Ju Teng and Aker Technology
Assuming the 90 days trading horizon Ju Teng International is expected to under-perform the Aker Technology. But the stock apears to be less risky and, when comparing its historical volatility, Ju Teng International is 6.04 times less risky than Aker Technology. The stock trades about -0.17 of its potential returns per unit of risk. The Aker Technology Co is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,130 in Aker Technology Co on September 1, 2024 and sell it today you would earn a total of 610.00 from holding Aker Technology Co or generate 28.64% 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. Aker Technology Co
Performance |
| Timeline |
| Ju Teng International |
| Aker Technology |
Ju Teng and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ju Teng and Aker Technology
The main advantage of trading using opposite Ju Teng and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ju Teng position performs unexpectedly, Aker Technology 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 Aker Technology will offset losses from the drop in Aker Technology'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 |
| Aker Technology vs. Hon Hai Precision | Aker Technology vs. Delta Electronics | Aker Technology vs. LARGAN Precision Co | Aker Technology vs. Yageo Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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