Correlation Between Ju Teng and Cal Comp
Can any of the company-specific risk be diversified away by investing in both Ju Teng and Cal Comp 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 Cal Comp 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 Cal Comp Electronics Public, you can compare the effects of market volatilities on Ju Teng and Cal Comp 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 Cal Comp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ju Teng and Cal Comp.
Diversification Opportunities for Ju Teng and Cal Comp
Pay attention - limited upside
The 3 months correlation between 9136 and Cal is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ju Teng International and Cal Comp Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Comp 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 Cal Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Comp Electronics has no effect on the direction of Ju Teng i.e., Ju Teng and Cal Comp go up and down completely randomly.
Pair Corralation between Ju Teng and Cal Comp
Assuming the 90 days trading horizon Ju Teng International is expected to under-perform the Cal Comp. But the stock apears to be less risky and, when comparing its historical volatility, Ju Teng International is 2.3 times less risky than Cal Comp. The stock trades about 0.0 of its potential returns per unit of risk. The Cal Comp Electronics Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 397.00 in Cal Comp Electronics Public on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Cal Comp Electronics Public or generate 91.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ju Teng International vs. Cal Comp Electronics Public
Performance |
| Timeline |
| Ju Teng International |
| Cal Comp Electronics |
Ju Teng and Cal Comp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ju Teng and Cal Comp
The main advantage of trading using opposite Ju Teng and Cal Comp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ju Teng position performs unexpectedly, Cal Comp 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 Cal Comp will offset losses from the drop in Cal Comp'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 |
| Cal Comp vs. Ton Yi Industrial | Cal Comp vs. Chenming Mold Industrial | Cal Comp vs. Gigastorage Corp | Cal Comp vs. AV Tech 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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