Correlation Between Ching Feng and Jetwell Computer
Can any of the company-specific risk be diversified away by investing in both Ching Feng and Jetwell Computer 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 Ching Feng and Jetwell Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ching Feng Home and Jetwell Computer Co, you can compare the effects of market volatilities on Ching Feng and Jetwell Computer 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 Ching Feng with a short position of Jetwell Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ching Feng and Jetwell Computer.
Diversification Opportunities for Ching Feng and Jetwell Computer
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ching and Jetwell is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ching Feng Home and Jetwell Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetwell Computer and Ching Feng 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 Ching Feng Home are associated (or correlated) with Jetwell Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetwell Computer has no effect on the direction of Ching Feng i.e., Ching Feng and Jetwell Computer go up and down completely randomly.
Pair Corralation between Ching Feng and Jetwell Computer
Assuming the 90 days trading horizon Ching Feng Home is expected to under-perform the Jetwell Computer. But the stock apears to be less risky and, when comparing its historical volatility, Ching Feng Home is 1.41 times less risky than Jetwell Computer. The stock trades about -0.22 of its potential returns per unit of risk. The Jetwell Computer Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 13,550 in Jetwell Computer Co on September 14, 2024 and sell it today you would earn a total of 2,100 from holding Jetwell Computer Co or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ching Feng Home vs. Jetwell Computer Co
Performance |
| Timeline |
| Ching Feng Home |
| Jetwell Computer |
Ching Feng and Jetwell Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ching Feng and Jetwell Computer
The main advantage of trading using opposite Ching Feng and Jetwell Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ching Feng position performs unexpectedly, Jetwell Computer 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 Jetwell Computer will offset losses from the drop in Jetwell Computer's long position.| Ching Feng vs. Feng Tay Enterprises | Ching Feng vs. Ruentex Development Co | Ching Feng vs. WiseChip Semiconductor | Ching Feng vs. Novatek Microelectronics Corp |
| Jetwell Computer vs. Phoenix Silicon International | Jetwell Computer vs. Sports Gear Co | Jetwell Computer vs. Ching Feng Home | Jetwell Computer vs. Chung Lien Transportation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets |