Correlation Between JINS HOLDINGS and NEXTDC
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and NEXTDC 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 JINS HOLDINGS and NEXTDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JINS HOLDINGS INC and NEXTDC LTD, you can compare the effects of market volatilities on JINS HOLDINGS and NEXTDC 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 JINS HOLDINGS with a short position of NEXTDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and NEXTDC.
Diversification Opportunities for JINS HOLDINGS and NEXTDC
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JINS and NEXTDC is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and NEXTDC LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXTDC LTD and JINS HOLDINGS 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 JINS HOLDINGS INC are associated (or correlated) with NEXTDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXTDC LTD has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and NEXTDC go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and NEXTDC
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 2.61 times more return on investment than NEXTDC. However, JINS HOLDINGS is 2.61 times more volatile than NEXTDC LTD. It trades about 0.06 of its potential returns per unit of risk. NEXTDC LTD is currently generating about 0.05 per unit of risk. If you would invest 1,271 in JINS HOLDINGS INC on October 11, 2024 and sell it today you would earn a total of 2,869 from holding JINS HOLDINGS INC or generate 225.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. NEXTDC LTD
Performance |
| Timeline |
| JINS HOLDINGS INC |
| NEXTDC LTD |
JINS HOLDINGS and NEXTDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and NEXTDC
The main advantage of trading using opposite JINS HOLDINGS and NEXTDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, NEXTDC 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 NEXTDC will offset losses from the drop in NEXTDC's long position.| JINS HOLDINGS vs. Nomad Foods | JINS HOLDINGS vs. BJs Wholesale Club | JINS HOLDINGS vs. Ross Stores | JINS HOLDINGS vs. TYSON FOODS A |
| NEXTDC vs. CODERE ONLINE LUX | NEXTDC vs. OPKO HEALTH | NEXTDC vs. CITY OFFICE REIT | NEXTDC vs. US Physical Therapy |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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