Correlation Between Shuttle and Jean
Can any of the company-specific risk be diversified away by investing in both Shuttle and Jean 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 Shuttle and Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shuttle and Jean Co, you can compare the effects of market volatilities on Shuttle and Jean 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 Shuttle with a short position of Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuttle and Jean.
Diversification Opportunities for Shuttle and Jean
Modest diversification
The 3 months correlation between Shuttle and Jean is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shuttle and Jean Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jean and Shuttle 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 Shuttle are associated (or correlated) with Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jean has no effect on the direction of Shuttle i.e., Shuttle and Jean go up and down completely randomly.
Pair Corralation between Shuttle and Jean
Assuming the 90 days trading horizon Shuttle is expected to generate 1.06 times more return on investment than Jean. However, Shuttle is 1.06 times more volatile than Jean Co. It trades about 0.04 of its potential returns per unit of risk. Jean Co is currently generating about 0.03 per unit of risk. If you would invest 1,760 in Shuttle on September 4, 2024 and sell it today you would earn a total of 395.00 from holding Shuttle or generate 22.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuttle vs. Jean Co
Performance |
| Timeline |
| Shuttle |
| Jean |
Shuttle and Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuttle and Jean
The main advantage of trading using opposite Shuttle and Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuttle position performs unexpectedly, Jean 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 Jean will offset losses from the drop in Jean's long position.| Shuttle vs. Clevo Co | Shuttle vs. Gigastorage Corp | Shuttle vs. KYE Systems Corp | Shuttle vs. AVerMedia Technologies |
| Jean vs. Shuttle | Jean vs. Amtran Technology Co | Jean vs. AVerMedia Technologies | Jean vs. Gigastorage Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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