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

-0.12

Correlation Coefficient

Jentech Precision  Nan Ya

Good diversification

The 3 months correlation between Jentech and Nan is -0.12. 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 under-perform the Nan Ya. In addition to that, Jentech Precision is 1.26 times more volatile than Nan Ya Printed. It trades about -0.11 of its total potential returns per unit of risk. Nan Ya Printed is currently generating about 0.08 per unit of volatility. If you would invest  11,750  in Nan Ya Printed on December 21, 2024 and sell it today you would earn a total of  1,300  from holding Nan Ya Printed or generate 11.06% 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

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 abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Nan Ya Printed

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nan Ya Printed are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Nan Ya showed solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind Jentech Precision Industrial and Nan Ya Printed 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.