Correlation Between Jentech Precision and Nan Ya
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Nan Ya 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 Nan Ya 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 Nan Ya Printed, you can compare the effects of market volatilities on Jentech Precision and Nan Ya 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 Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Nan Ya.
Diversification Opportunities for Jentech Precision and Nan Ya
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jentech and Nan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Nan Ya Printed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nan Ya Printed 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 Nan Ya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nan Ya Printed has no effect on the direction of Jentech Precision i.e., Jentech Precision and Nan Ya go up and down completely randomly.
Pair Corralation between Jentech Precision and Nan Ya
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to generate 1.36 times more return on investment than Nan Ya. However, Jentech Precision is 1.36 times more volatile than Nan Ya Printed. It trades about 0.09 of its potential returns per unit of risk. Nan Ya Printed is currently generating about -0.15 per unit of risk. If you would invest 101,500 in Jentech Precision Industrial on September 1, 2024 and sell it today you would earn a total of 37,000 from holding Jentech Precision Industrial or generate 36.45% 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. Nan Ya Printed
Performance |
| Timeline |
| Jentech Precision |
| Nan Ya Printed |
Jentech Precision and Nan Ya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jentech Precision and Nan Ya
The main advantage of trading using opposite Jentech Precision and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Nan Ya 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 Nan Ya will offset losses from the drop in Nan Ya'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 |
| Nan Ya vs. Unimicron Technology Corp | Nan Ya vs. Kinsus Interconnect Technology | Nan Ya vs. Novatek Microelectronics Corp | Nan Ya vs. Delta Electronics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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