Correlation Between System and Jb Financial
Can any of the company-specific risk be diversified away by investing in both System and Jb Financial 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 System and Jb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between System and Application and Jb Financial, you can compare the effects of market volatilities on System and Jb Financial 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 System with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of System and Jb Financial.
Diversification Opportunities for System and Jb Financial
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between System and 175330 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding System and Application and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and System 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 System and Application are associated (or correlated) with Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of System i.e., System and Jb Financial go up and down completely randomly.
Pair Corralation between System and Jb Financial
Assuming the 90 days trading horizon System and Application is expected to generate 1.45 times more return on investment than Jb Financial. However, System is 1.45 times more volatile than Jb Financial. It trades about 0.06 of its potential returns per unit of risk. Jb Financial is currently generating about -0.01 per unit of risk. If you would invest 160,074 in System and Application on October 17, 2024 and sell it today you would earn a total of 3,726 from holding System and Application or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
System and Application vs. Jb Financial
Performance |
| Timeline |
| System and Application |
| Jb Financial |
System and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with System and Jb Financial
The main advantage of trading using opposite System and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if System position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| System vs. Shinhan Inverse Copper | System vs. LB Investment | System vs. EBEST Investment Securities | System vs. DSC Investment |
| Jb Financial vs. BNK Financial Group | Jb Financial vs. Daiyang Metal Co | Jb Financial vs. Industrial Bank | Jb Financial vs. MetaLabs Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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