Correlation Between Jentech Precision and Global Unichip
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Global Unichip 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 Global Unichip 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 Global Unichip Corp, you can compare the effects of market volatilities on Jentech Precision and Global Unichip 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 Global Unichip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Global Unichip.
Diversification Opportunities for Jentech Precision and Global Unichip
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jentech and Global is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Global Unichip Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Unichip Corp 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 Global Unichip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Unichip Corp has no effect on the direction of Jentech Precision i.e., Jentech Precision and Global Unichip go up and down completely randomly.
Pair Corralation between Jentech Precision and Global Unichip
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to under-perform the Global Unichip. In addition to that, Jentech Precision is 1.16 times more volatile than Global Unichip Corp. It trades about -0.09 of its total potential returns per unit of risk. Global Unichip Corp is currently generating about -0.05 per unit of volatility. If you would invest 123,500 in Global Unichip Corp on August 30, 2024 and sell it today you would lose (5,500) from holding Global Unichip Corp or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jentech Precision Industrial vs. Global Unichip Corp
Performance |
| Timeline |
| Jentech Precision |
| Global Unichip Corp |
Jentech Precision and Global Unichip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jentech Precision and Global Unichip
The main advantage of trading using opposite Jentech Precision and Global Unichip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Global Unichip 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 Global Unichip will offset losses from the drop in Global Unichip'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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |