Correlation Between JINS HOLDINGS and DANIMER SCIENTIFIC
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC, you can compare the effects of market volatilities on JINS HOLDINGS and DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and DANIMER SCIENTIFIC.
Diversification Opportunities for JINS HOLDINGS and DANIMER SCIENTIFIC
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JINS and DANIMER is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and DANIMER SCIENTIFIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DANIMER SCIENTIFIC has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and DANIMER SCIENTIFIC go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and DANIMER SCIENTIFIC
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 0.47 times more return on investment than DANIMER SCIENTIFIC. However, JINS HOLDINGS INC is 2.12 times less risky than DANIMER SCIENTIFIC. It trades about 0.16 of its potential returns per unit of risk. DANIMER SCIENTIFIC is currently generating about -0.08 per unit of risk. If you would invest 2,260 in JINS HOLDINGS INC on September 23, 2024 and sell it today you would earn a total of 1,740 from holding JINS HOLDINGS INC or generate 76.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. DANIMER SCIENTIFIC
Performance |
| Timeline |
| JINS HOLDINGS INC |
| DANIMER SCIENTIFIC |
JINS HOLDINGS and DANIMER SCIENTIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and DANIMER SCIENTIFIC
The main advantage of trading using opposite JINS HOLDINGS and DANIMER SCIENTIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC will offset losses from the drop in DANIMER SCIENTIFIC's long position.| JINS HOLDINGS vs. ESSILORLUXOTTICA 12ON | JINS HOLDINGS vs. Intuitive Surgical | JINS HOLDINGS vs. EssilorLuxottica Socit anonyme | JINS HOLDINGS vs. Resmed Inc DRC |
| DANIMER SCIENTIFIC vs. Novo Nordisk AS | DANIMER SCIENTIFIC vs. CSL LTD SPONADR | DANIMER SCIENTIFIC vs. CSL Limited | DANIMER SCIENTIFIC vs. Mercedes Benz Group AG |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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