Correlation Between Jb Financial and Nature
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Nature 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 Jb Financial and Nature into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Nature and Environment, you can compare the effects of market volatilities on Jb Financial and Nature 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 Jb Financial with a short position of Nature. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Nature.
Diversification Opportunities for Jb Financial and Nature
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 175330 and Nature is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Nature and Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nature and Environment and Jb Financial 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 Jb Financial are associated (or correlated) with Nature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nature and Environment has no effect on the direction of Jb Financial i.e., Jb Financial and Nature go up and down completely randomly.
Pair Corralation between Jb Financial and Nature
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.87 times more return on investment than Nature. However, Jb Financial is 1.15 times less risky than Nature. It trades about -0.01 of its potential returns per unit of risk. Nature and Environment is currently generating about -0.01 per unit of risk. If you would invest 1,968,000 in Jb Financial on October 30, 2024 and sell it today you would lose (31,000) from holding Jb Financial or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Nature and Environment
Performance |
| Timeline |
| Jb Financial |
| Nature and Environment |
Jb Financial and Nature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Nature
The main advantage of trading using opposite Jb Financial and Nature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Nature 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 Nature will offset losses from the drop in Nature's long position.| Jb Financial vs. Dongbu Insurance Co | Jb Financial vs. Shinhan Financial Group | Jb Financial vs. Cloud Air CoLtd | Jb Financial vs. Dgb Financial |
| Nature vs. Samsung Electronics Co | Nature vs. Samsung Electronics Co | Nature vs. KB Financial Group | Nature vs. Shinhan Financial Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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