Correlation Between New Residential and JLF INVESTMENT
Can any of the company-specific risk be diversified away by investing in both New Residential and JLF INVESTMENT 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 New Residential and JLF INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Residential Investment and JLF INVESTMENT, you can compare the effects of market volatilities on New Residential and JLF INVESTMENT 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 New Residential with a short position of JLF INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Residential and JLF INVESTMENT.
Diversification Opportunities for New Residential and JLF INVESTMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and JLF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment and JLF INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLF INVESTMENT and New Residential 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 New Residential Investment are associated (or correlated) with JLF INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLF INVESTMENT has no effect on the direction of New Residential i.e., New Residential and JLF INVESTMENT go up and down completely randomly.
Pair Corralation between New Residential and JLF INVESTMENT
If you would invest 1,020 in New Residential Investment on October 23, 2024 and sell it today you would earn a total of 86.00 from holding New Residential Investment or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Residential Investment vs. JLF INVESTMENT
Performance |
| Timeline |
| New Residential Inve |
| JLF INVESTMENT |
New Residential and JLF INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Residential and JLF INVESTMENT
The main advantage of trading using opposite New Residential and JLF INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Residential position performs unexpectedly, JLF INVESTMENT 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 JLF INVESTMENT will offset losses from the drop in JLF INVESTMENT's long position.| New Residential vs. Verizon Communications | New Residential vs. MICRONIC MYDATA | New Residential vs. Cass Information Systems | New Residential vs. DATATEC LTD 2 |
| JLF INVESTMENT vs. GOLD ROAD RES | JLF INVESTMENT vs. BROADWIND ENRGY | JLF INVESTMENT vs. Nishi Nippon Railroad Co | JLF INVESTMENT vs. EVS Broadcast Equipment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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