Correlation Between Nan Ya and Jentech Precision
Can any of the company-specific risk be diversified away by investing in both Nan Ya and Jentech Precision 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 Nan Ya and Jentech Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nan Ya Printed and Jentech Precision Industrial, you can compare the effects of market volatilities on Nan Ya and Jentech Precision 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 Nan Ya with a short position of Jentech Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nan Ya and Jentech Precision.
Diversification Opportunities for Nan Ya and Jentech Precision
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nan and Jentech is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nan Ya Printed and Jentech Precision Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jentech Precision and Nan Ya 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 Nan Ya Printed are associated (or correlated) with Jentech Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jentech Precision has no effect on the direction of Nan Ya i.e., Nan Ya and Jentech Precision go up and down completely randomly.
Pair Corralation between Nan Ya and Jentech Precision
Assuming the 90 days trading horizon Nan Ya Printed is expected to generate 0.96 times more return on investment than Jentech Precision. However, Nan Ya Printed is 1.04 times less risky than Jentech Precision. It trades about 0.07 of its potential returns per unit of risk. Jentech Precision Industrial is currently generating about -0.04 per unit of risk. If you would invest 12,700 in Nan Ya Printed on October 26, 2024 and sell it today you would earn a total of 900.00 from holding Nan Ya Printed or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nan Ya Printed vs. Jentech Precision Industrial
Performance |
| Timeline |
| Nan Ya Printed |
| Jentech Precision |
Nan Ya and Jentech Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nan Ya and Jentech Precision
The main advantage of trading using opposite Nan Ya and Jentech Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nan Ya position performs unexpectedly, Jentech Precision 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 Jentech Precision will offset losses from the drop in Jentech Precision's long position.| Nan Ya vs. Unimicron Technology Corp | Nan Ya vs. Kinsus Interconnect Technology | Nan Ya vs. Novatek Microelectronics Corp | Nan Ya vs. Delta Electronics |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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