Correlation Between JINS HOLDINGS and Nib Holdings
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and Nib 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 JINS HOLDINGS and Nib Holdings 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 nib holdings limited, you can compare the effects of market volatilities on JINS HOLDINGS and Nib 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 JINS HOLDINGS with a short position of Nib Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and Nib Holdings.
Diversification Opportunities for JINS HOLDINGS and Nib Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JINS and Nib is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and nib holdings limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nib holdings limited 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 Nib Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nib holdings limited has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and Nib Holdings go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and Nib Holdings
Assuming the 90 days horizon JINS HOLDINGS is expected to generate 5.6 times less return on investment than Nib Holdings. But when comparing it to its historical volatility, JINS HOLDINGS INC is 1.05 times less risky than Nib Holdings. It trades about 0.06 of its potential returns per unit of risk. nib holdings limited is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 272.00 in nib holdings limited on October 20, 2024 and sell it today you would earn a total of 52.00 from holding nib holdings limited or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. nib holdings limited
Performance |
| Timeline |
| JINS HOLDINGS INC |
| nib holdings limited |
JINS HOLDINGS and Nib Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and Nib Holdings
The main advantage of trading using opposite JINS HOLDINGS and Nib Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, Nib 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 Nib Holdings will offset losses from the drop in Nib Holdings' long position.| JINS HOLDINGS vs. Datang International Power | JINS HOLDINGS vs. Cass Information Systems | JINS HOLDINGS vs. MICRONIC MYDATA | JINS HOLDINGS vs. PRECISION DRILLING P |
| Nib Holdings vs. Mapfre SA | Nib Holdings vs. First American Financial | Nib Holdings vs. Assured Guaranty | Nib Holdings vs. Trupanion |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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