Correlation Between Jentech Precision and Tsang Yow
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Tsang Yow 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 Jentech Precision and Tsang Yow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jentech Precision Industrial and Tsang Yow Industrial, you can compare the effects of market volatilities on Jentech Precision and Tsang Yow 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 Jentech Precision with a short position of Tsang Yow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Tsang Yow.
Diversification Opportunities for Jentech Precision and Tsang Yow
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jentech and Tsang is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Tsang Yow Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsang Yow Industrial and Jentech Precision 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 Jentech Precision Industrial are associated (or correlated) with Tsang Yow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsang Yow Industrial has no effect on the direction of Jentech Precision i.e., Jentech Precision and Tsang Yow go up and down completely randomly.
Pair Corralation between Jentech Precision and Tsang Yow
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to under-perform the Tsang Yow. In addition to that, Jentech Precision is 4.07 times more volatile than Tsang Yow Industrial. It trades about -0.04 of its total potential returns per unit of risk. Tsang Yow Industrial is currently generating about -0.13 per unit of volatility. If you would invest 2,845 in Tsang Yow Industrial on September 12, 2024 and sell it today you would lose (75.00) from holding Tsang Yow Industrial or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jentech Precision Industrial vs. Tsang Yow Industrial
Performance |
| Timeline |
| Jentech Precision |
| Tsang Yow Industrial |
Jentech Precision and Tsang Yow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jentech Precision and Tsang Yow
The main advantage of trading using opposite Jentech Precision and Tsang Yow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Tsang Yow 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 Tsang Yow will offset losses from the drop in Tsang Yow's long position.| Jentech Precision vs. AU Optronics | Jentech Precision vs. Innolux Corp | Jentech Precision vs. Ruentex Development Co | Jentech Precision vs. WiseChip Semiconductor |
| Tsang Yow vs. E Lead Electronic Co | Tsang Yow vs. Jentech Precision Industrial | Tsang Yow vs. Turvo International Co | Tsang Yow vs. Ruentex Development Co |
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.
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