Correlation Between JSL Construction and Fu Burg
Can any of the company-specific risk be diversified away by investing in both JSL Construction and Fu Burg 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 JSL Construction and Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSL Construction Development and Fu Burg Industrial, you can compare the effects of market volatilities on JSL Construction and Fu Burg 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 JSL Construction with a short position of Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSL Construction and Fu Burg.
Diversification Opportunities for JSL Construction and Fu Burg
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between JSL and 8929 is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding JSL Construction Development and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial and JSL Construction 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 JSL Construction Development are associated (or correlated) with Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of JSL Construction i.e., JSL Construction and Fu Burg go up and down completely randomly.
Pair Corralation between JSL Construction and Fu Burg
Assuming the 90 days trading horizon JSL Construction Development is expected to generate 1.5 times more return on investment than Fu Burg. However, JSL Construction is 1.5 times more volatile than Fu Burg Industrial. It trades about 0.08 of its potential returns per unit of risk. Fu Burg Industrial is currently generating about -0.11 per unit of risk. If you would invest 8,670 in JSL Construction Development on October 16, 2024 and sell it today you would earn a total of 350.00 from holding JSL Construction Development or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSL Construction Development vs. Fu Burg Industrial
Performance |
| Timeline |
| JSL Construction Dev |
| Fu Burg Industrial |
JSL Construction and Fu Burg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSL Construction and Fu Burg
The main advantage of trading using opposite JSL Construction and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSL Construction position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.| JSL Construction vs. Kings Town Construction | JSL Construction vs. Highwealth Construction Corp | JSL Construction vs. Sakura Development Co | JSL Construction vs. Prince Housing Development |
| Fu Burg vs. Acelon Chemicals Fiber | Fu Burg vs. Phoenix Silicon International | Fu Burg vs. Qualipoly Chemical Corp | Fu Burg vs. JSL Construction Development |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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