Correlation Between Jb Financial and NAU IB
Can any of the company-specific risk be diversified away by investing in both Jb Financial and NAU IB 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 NAU IB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and NAU IB Capital, you can compare the effects of market volatilities on Jb Financial and NAU IB 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 NAU IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and NAU IB.
Diversification Opportunities for Jb Financial and NAU IB
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 175330 and NAU is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and NAU IB Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAU IB Capital 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 NAU IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAU IB Capital has no effect on the direction of Jb Financial i.e., Jb Financial and NAU IB go up and down completely randomly.
Pair Corralation between Jb Financial and NAU IB
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.68 times more return on investment than NAU IB. However, Jb Financial is 1.46 times less risky than NAU IB. It trades about 0.13 of its potential returns per unit of risk. NAU IB Capital is currently generating about 0.01 per unit of risk. If you would invest 798,550 in Jb Financial on September 12, 2024 and sell it today you would earn a total of 990,450 from holding Jb Financial or generate 124.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. NAU IB Capital
Performance |
| Timeline |
| Jb Financial |
| NAU IB Capital |
Jb Financial and NAU IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and NAU IB
The main advantage of trading using opposite Jb Financial and NAU IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, NAU IB 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 NAU IB will offset losses from the drop in NAU IB's long position.| Jb Financial vs. Hansol Chemical Co | Jb Financial vs. Tae Kyung Chemical | Jb Financial vs. Genie Music | Jb Financial vs. Kukdo Chemical Co |
| NAU IB vs. Alton Sports CoLtd | NAU IB vs. Neungyule Education | NAU IB vs. Seoul Broadcasting System | NAU IB vs. Jb Financial |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |