Correlation Between WisdomTree Investments and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both WisdomTree Investments and JINS HOLDINGS 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 WisdomTree Investments and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Investments and JINS HOLDINGS INC, you can compare the effects of market volatilities on WisdomTree Investments and JINS HOLDINGS 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 WisdomTree Investments with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Investments and JINS HOLDINGS.
Diversification Opportunities for WisdomTree Investments and JINS HOLDINGS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and JINS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Investments and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and WisdomTree Investments 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 WisdomTree Investments are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of WisdomTree Investments i.e., WisdomTree Investments and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between WisdomTree Investments and JINS HOLDINGS
Assuming the 90 days horizon WisdomTree Investments is expected to under-perform the JINS HOLDINGS. But the stock apears to be less risky and, when comparing its historical volatility, WisdomTree Investments is 1.62 times less risky than JINS HOLDINGS. The stock trades about -0.62 of its potential returns per unit of risk. The JINS HOLDINGS INC is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,820 in JINS HOLDINGS INC on October 16, 2024 and sell it today you would earn a total of 380.00 from holding JINS HOLDINGS INC or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Investments vs. JINS HOLDINGS INC
Performance |
| Timeline |
| WisdomTree Investments |
| JINS HOLDINGS INC |
WisdomTree Investments and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Investments and JINS HOLDINGS
The main advantage of trading using opposite WisdomTree Investments and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Investments position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| WisdomTree Investments vs. FIRST SHIP LEASE | WisdomTree Investments vs. Guidewire Software | WisdomTree Investments vs. LOANDEPOT INC A | WisdomTree Investments vs. ALBIS LEASING AG |
| JINS HOLDINGS vs. STORE ELECTRONIC | JINS HOLDINGS vs. STMicroelectronics NV | JINS HOLDINGS vs. ALTAIR RES INC | JINS HOLDINGS vs. Delta Electronics Public |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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