Correlation Between Jb Financial and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Jb Financial and PJ Metal 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 PJ Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and PJ Metal Co, you can compare the effects of market volatilities on Jb Financial and PJ Metal 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 PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and PJ Metal.
Diversification Opportunities for Jb Financial and PJ Metal
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 175330 and 128660 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Metal 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 PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Jb Financial i.e., Jb Financial and PJ Metal go up and down completely randomly.
Pair Corralation between Jb Financial and PJ Metal
Assuming the 90 days trading horizon Jb Financial is expected to under-perform the PJ Metal. In addition to that, Jb Financial is 1.55 times more volatile than PJ Metal Co. It trades about -0.39 of its total potential returns per unit of risk. PJ Metal Co is currently generating about 0.32 per unit of volatility. If you would invest 285,008 in PJ Metal Co on October 12, 2024 and sell it today you would earn a total of 17,492 from holding PJ Metal Co or generate 6.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
Jb Financial vs. PJ Metal Co
Performance |
Timeline |
Jb Financial |
PJ Metal |
Jb Financial and PJ Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jb Financial and PJ Metal
The main advantage of trading using opposite Jb Financial and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, PJ Metal 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 PJ Metal will offset losses from the drop in PJ Metal's long position.Jb Financial vs. ChipsMedia | Jb Financial vs. Alton Sports CoLtd | Jb Financial vs. Kukil Metal Co | Jb Financial vs. MediaZen |
PJ Metal vs. KakaoBank Corp | PJ Metal vs. Kbi Metal Co | PJ Metal vs. Jb Financial | PJ Metal vs. KB 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |