Correlation Between Jentech Precision and Syntek Semiconductor
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Syntek Semiconductor 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 Syntek Semiconductor 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 Syntek Semiconductor Co, you can compare the effects of market volatilities on Jentech Precision and Syntek Semiconductor 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 Syntek Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Syntek Semiconductor.
Diversification Opportunities for Jentech Precision and Syntek Semiconductor
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jentech and Syntek is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Syntek Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntek Semiconductor 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 Syntek Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntek Semiconductor has no effect on the direction of Jentech Precision i.e., Jentech Precision and Syntek Semiconductor go up and down completely randomly.
Pair Corralation between Jentech Precision and Syntek Semiconductor
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to generate 1.32 times more return on investment than Syntek Semiconductor. However, Jentech Precision is 1.32 times more volatile than Syntek Semiconductor Co. It trades about 0.11 of its potential returns per unit of risk. Syntek Semiconductor Co is currently generating about -0.01 per unit of risk. If you would invest 69,600 in Jentech Precision Industrial on September 14, 2024 and sell it today you would earn a total of 76,400 from holding Jentech Precision Industrial or generate 109.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jentech Precision Industrial vs. Syntek Semiconductor Co
Performance |
| Timeline |
| Jentech Precision |
| Syntek Semiconductor |
Jentech Precision and Syntek Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jentech Precision and Syntek Semiconductor
The main advantage of trading using opposite Jentech Precision and Syntek Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Syntek Semiconductor 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 Syntek Semiconductor will offset losses from the drop in Syntek Semiconductor'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 |
| Syntek Semiconductor vs. WIN Semiconductors | Syntek Semiconductor vs. GlobalWafers Co | Syntek Semiconductor vs. Novatek Microelectronics Corp | Syntek Semiconductor 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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