Correlation Between JINS HOLDINGS and Expedia
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and Expedia 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 Expedia 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 Expedia Group, you can compare the effects of market volatilities on JINS HOLDINGS and Expedia 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 Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and Expedia.
Diversification Opportunities for JINS HOLDINGS and Expedia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JINS and Expedia is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group 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 Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Group has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and Expedia go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and Expedia
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 2.35 times more return on investment than Expedia. However, JINS HOLDINGS is 2.35 times more volatile than Expedia Group. It trades about 0.05 of its potential returns per unit of risk. Expedia Group is currently generating about 0.06 per unit of risk. If you would invest 1,352 in JINS HOLDINGS INC on August 24, 2024 and sell it today you would earn a total of 2,528 from holding JINS HOLDINGS INC or generate 186.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. Expedia Group
Performance |
| Timeline |
| JINS HOLDINGS INC |
| Expedia Group |
JINS HOLDINGS and Expedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and Expedia
The main advantage of trading using opposite JINS HOLDINGS and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, Expedia 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 Expedia will offset losses from the drop in Expedia's long position.| JINS HOLDINGS vs. Intuitive Surgical | JINS HOLDINGS vs. HOYA Corporation | JINS HOLDINGS vs. Superior Plus Corp | JINS HOLDINGS vs. NMI Holdings |
| Expedia vs. MeVis Medical Solutions | Expedia vs. ELMOS SEMICONDUCTOR | Expedia vs. ONWARD MEDICAL BV | Expedia vs. AIR PRODCHEMICALS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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