Correlation Between Jentech Precision and Chi Hua
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Chi Hua 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 Chi Hua 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 Chi Hua Fitness, you can compare the effects of market volatilities on Jentech Precision and Chi Hua 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 Chi Hua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Chi Hua.
Diversification Opportunities for Jentech Precision and Chi Hua
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jentech and Chi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Chi Hua Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chi Hua Fitness 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 Chi Hua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chi Hua Fitness has no effect on the direction of Jentech Precision i.e., Jentech Precision and Chi Hua go up and down completely randomly.
Pair Corralation between Jentech Precision and Chi Hua
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to generate 3.66 times more return on investment than Chi Hua. However, Jentech Precision is 3.66 times more volatile than Chi Hua Fitness. It trades about -0.04 of its potential returns per unit of risk. Chi Hua Fitness is currently generating about -0.37 per unit of risk. If you would invest 151,000 in Jentech Precision Industrial on October 12, 2024 and sell it today you would lose (5,500) from holding Jentech Precision Industrial or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jentech Precision Industrial vs. Chi Hua Fitness
Performance |
| Timeline |
| Jentech Precision |
| Chi Hua Fitness |
Jentech Precision and Chi Hua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jentech Precision and Chi Hua
The main advantage of trading using opposite Jentech Precision and Chi Hua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Chi Hua 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 Chi Hua will offset losses from the drop in Chi Hua's long position.| Jentech Precision vs. Lotes Co | Jentech Precision vs. Nan Ya Printed | Jentech Precision vs. Global Unichip Corp | Jentech Precision vs. Tong Hsing Electronic |
| Chi Hua vs. Jentech Precision Industrial | Chi Hua vs. Yi Jinn Industrial | Chi Hua vs. Tex Ray Industrial Co | Chi Hua vs. Fu Burg Industrial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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