Correlation Between Ju Teng and SIM Technology
Can any of the company-specific risk be diversified away by investing in both Ju Teng and SIM 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 SIM 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 SIM Technology Group, you can compare the effects of market volatilities on Ju Teng and SIM 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 SIM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ju Teng and SIM Technology.
Diversification Opportunities for Ju Teng and SIM Technology
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 9136 and SIM is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ju Teng International and SIM Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIM Technology Group 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 SIM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIM Technology Group has no effect on the direction of Ju Teng i.e., Ju Teng and SIM Technology go up and down completely randomly.
Pair Corralation between Ju Teng and SIM Technology
Assuming the 90 days trading horizon Ju Teng International is expected to under-perform the SIM Technology. But the stock apears to be less risky and, when comparing its historical volatility, Ju Teng International is 3.0 times less risky than SIM Technology. The stock trades about -0.33 of its potential returns per unit of risk. The SIM Technology Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 314.00 in SIM Technology Group on September 12, 2024 and sell it today you would lose (3.00) from holding SIM Technology Group or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ju Teng International vs. SIM Technology Group
Performance |
| Timeline |
| Ju Teng International |
| SIM Technology Group |
Ju Teng and SIM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ju Teng and SIM Technology
The main advantage of trading using opposite Ju Teng and SIM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ju Teng position performs unexpectedly, SIM 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 SIM Technology will offset losses from the drop in SIM 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 |
| SIM Technology vs. Cal Comp Electronics Public | SIM Technology vs. Neo Neon Holdings Limited | SIM Technology vs. Ju Teng International | SIM Technology vs. Digital China Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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