Correlation Between Jentech Precision and Amulaire Thermal

Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Amulaire Thermal 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 Amulaire Thermal 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 Amulaire Thermal Technology, you can compare the effects of market volatilities on Jentech Precision and Amulaire Thermal 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 Amulaire Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Amulaire Thermal.

Diversification Opportunities for Jentech Precision and Amulaire Thermal

-0.36

Correlation Coefficient

Jentech Precision  Amulaire Thermal

Very good diversification

The 3 months correlation between Jentech and Amulaire is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Amulaire Thermal Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amulaire Thermal Tec 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 Amulaire Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amulaire Thermal Tec has no effect on the direction of Jentech Precision i.e., Jentech Precision and Amulaire Thermal go up and down completely randomly.

Pair Corralation between Jentech Precision and Amulaire Thermal

Assuming the 90 days trading horizon Jentech Precision Industrial is expected to under-perform the Amulaire Thermal. In addition to that, Jentech Precision is 1.56 times more volatile than Amulaire Thermal Technology. It trades about -0.05 of its total potential returns per unit of risk. Amulaire Thermal Technology is currently generating about 0.01 per unit of volatility. If you would invest  3,060  in Amulaire Thermal Technology on December 3, 2024 and sell it today you would earn a total of  10.00  from holding Amulaire Thermal Technology or generate 0.33% 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.  Amulaire Thermal Technology

Jentech Precision

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jentech Precision Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Amulaire Thermal Tec

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amulaire Thermal Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Amulaire Thermal is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Jentech Precision and Amulaire Thermal

The main advantage of trading using opposite Jentech Precision and Amulaire Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Amulaire Thermal 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 Amulaire Thermal will offset losses from the drop in Amulaire Thermal's long position.

The idea behind Jentech Precision Industrial and Amulaire Thermal Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.