Correlation Between Jentech Precision and Chant Sincere
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Chant Sincere 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 Chant Sincere 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 Chant Sincere Co, you can compare the effects of market volatilities on Jentech Precision and Chant Sincere 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 Chant Sincere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Chant Sincere.
Diversification Opportunities for Jentech Precision and Chant Sincere
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jentech and Chant is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Chant Sincere Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chant Sincere 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 Chant Sincere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chant Sincere has no effect on the direction of Jentech Precision i.e., Jentech Precision and Chant Sincere go up and down completely randomly.
Pair Corralation between Jentech Precision and Chant Sincere
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to generate 1.47 times more return on investment than Chant Sincere. However, Jentech Precision is 1.47 times more volatile than Chant Sincere Co. It trades about 0.09 of its potential returns per unit of risk. Chant Sincere Co is currently generating about 0.0 per unit of risk. If you would invest 89,600 in Jentech Precision Industrial on October 12, 2024 and sell it today you would earn a total of 55,900 from holding Jentech Precision Industrial or generate 62.39% 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. Chant Sincere Co
Performance |
| Timeline |
| Jentech Precision |
| Chant Sincere |
Jentech Precision and Chant Sincere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jentech Precision and Chant Sincere
The main advantage of trading using opposite Jentech Precision and Chant Sincere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Chant Sincere 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 Chant Sincere will offset losses from the drop in Chant Sincere'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 |
| Chant Sincere vs. Holy Stone Enterprise | Chant Sincere vs. Walsin Technology Corp | Chant Sincere vs. Yageo Corp | Chant Sincere vs. HannStar Board Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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