Correlation Between Jentech Precision and Gold Rain
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Gold Rain 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 Gold Rain 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 Gold Rain Enterprises, you can compare the effects of market volatilities on Jentech Precision and Gold Rain 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 Gold Rain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Gold Rain.
Diversification Opportunities for Jentech Precision and Gold Rain
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jentech and Gold is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Gold Rain Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Rain Enterprises 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 Gold Rain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Rain Enterprises has no effect on the direction of Jentech Precision i.e., Jentech Precision and Gold Rain go up and down completely randomly.
Pair Corralation between Jentech Precision and Gold Rain
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to under-perform the Gold Rain. In addition to that, Jentech Precision is 1.57 times more volatile than Gold Rain Enterprises. It trades about -0.02 of its total potential returns per unit of risk. Gold Rain Enterprises is currently generating about 0.0 per unit of volatility. If you would invest 5,040 in Gold Rain Enterprises on September 26, 2024 and sell it today you would lose (20.00) from holding Gold Rain Enterprises or give up 0.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jentech Precision Industrial vs. Gold Rain Enterprises
Performance |
Timeline |
Jentech Precision |
Gold Rain Enterprises |
Jentech Precision and Gold Rain Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jentech Precision and Gold Rain
The main advantage of trading using opposite Jentech Precision and Gold Rain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Gold Rain 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 Gold Rain will offset losses from the drop in Gold Rain'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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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