Correlation Between Ruentex Development and Ji Haw
Can any of the company-specific risk be diversified away by investing in both Ruentex Development and Ji Haw 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 Ruentex Development and Ji Haw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ruentex Development Co and Ji Haw Industrial Co, you can compare the effects of market volatilities on Ruentex Development and Ji Haw 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 Ruentex Development with a short position of Ji Haw. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruentex Development and Ji Haw.
Diversification Opportunities for Ruentex Development and Ji Haw
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ruentex and 3011 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ruentex Development Co and Ji Haw Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ji Haw Industrial and Ruentex Development 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 Ruentex Development Co are associated (or correlated) with Ji Haw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ji Haw Industrial has no effect on the direction of Ruentex Development i.e., Ruentex Development and Ji Haw go up and down completely randomly.
Pair Corralation between Ruentex Development and Ji Haw
Assuming the 90 days trading horizon Ruentex Development Co is expected to under-perform the Ji Haw. But the stock apears to be less risky and, when comparing its historical volatility, Ruentex Development Co is 1.63 times less risky than Ji Haw. The stock trades about -0.06 of its potential returns per unit of risk. The Ji Haw Industrial Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,565 in Ji Haw Industrial Co on September 14, 2024 and sell it today you would earn a total of 35.00 from holding Ji Haw Industrial Co or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ruentex Development Co vs. Ji Haw Industrial Co
Performance |
| Timeline |
| Ruentex Development |
| Ji Haw Industrial |
Ruentex Development and Ji Haw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ruentex Development and Ji Haw
The main advantage of trading using opposite Ruentex Development and Ji Haw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ruentex Development position performs unexpectedly, Ji Haw 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 Ji Haw will offset losses from the drop in Ji Haw's long position.| Ruentex Development vs. Ruentex Industries | Ruentex Development vs. Pou Chen Corp | Ruentex Development vs. Fubon Financial Holding | Ruentex Development vs. Cathay Financial Holding |
| Ji Haw vs. AU Optronics | Ji Haw vs. Innolux Corp | Ji Haw vs. Ruentex Development Co | Ji Haw vs. WiseChip Semiconductor |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |