Correlation Between Advantech and Ju Teng
Can any of the company-specific risk be diversified away by investing in both Advantech and Ju Teng 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 Advantech and Ju Teng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantech Co and Ju Teng International, you can compare the effects of market volatilities on Advantech and Ju Teng 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 Advantech with a short position of Ju Teng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantech and Ju Teng.
Diversification Opportunities for Advantech and Ju Teng
Pay attention - limited upside
The 3 months correlation between Advantech and 9136 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Advantech Co and Ju Teng International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ju Teng International and Advantech 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 Advantech Co are associated (or correlated) with Ju Teng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ju Teng International has no effect on the direction of Advantech i.e., Advantech and Ju Teng go up and down completely randomly.
Pair Corralation between Advantech and Ju Teng
Assuming the 90 days trading horizon Advantech Co is expected to generate 1.81 times more return on investment than Ju Teng. However, Advantech is 1.81 times more volatile than Ju Teng International. It trades about 0.02 of its potential returns per unit of risk. Ju Teng International is currently generating about 0.03 per unit of risk. If you would invest 34,950 in Advantech Co on September 25, 2024 and sell it today you would earn a total of 200.00 from holding Advantech Co or generate 0.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Advantech Co vs. Ju Teng International
Performance |
Timeline |
Advantech |
Ju Teng International |
Advantech and Ju Teng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advantech and Ju Teng
The main advantage of trading using opposite Advantech and Ju Teng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantech position performs unexpectedly, Ju Teng 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 Ju Teng will offset losses from the drop in Ju Teng's long position.Advantech vs. Century Wind Power | Advantech vs. Green World Fintech | Advantech vs. Ingentec | Advantech vs. Chaheng Precision Co |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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