Correlation Between JINS HOLDINGS and Flight Centre
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and Flight Centre 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 Flight Centre 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 Flight Centre Travel, you can compare the effects of market volatilities on JINS HOLDINGS and Flight Centre 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 Flight Centre. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and Flight Centre.
Diversification Opportunities for JINS HOLDINGS and Flight Centre
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JINS and Flight is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and Flight Centre Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flight Centre Travel 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 Flight Centre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flight Centre Travel has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and Flight Centre go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and Flight Centre
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 1.01 times more return on investment than Flight Centre. However, JINS HOLDINGS is 1.01 times more volatile than Flight Centre Travel. It trades about 0.25 of its potential returns per unit of risk. Flight Centre Travel is currently generating about 0.23 per unit of risk. If you would invest 3,580 in JINS HOLDINGS INC on August 26, 2024 and sell it today you would earn a total of 320.00 from holding JINS HOLDINGS INC or generate 8.94% 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. Flight Centre Travel
Performance |
| Timeline |
| JINS HOLDINGS INC |
| Flight Centre Travel |
JINS HOLDINGS and Flight Centre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and Flight Centre
The main advantage of trading using opposite JINS HOLDINGS and Flight Centre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, Flight Centre 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 Flight Centre will offset losses from the drop in Flight Centre's long position.| JINS HOLDINGS vs. Intuitive Surgical | JINS HOLDINGS vs. Superior Plus Corp | JINS HOLDINGS vs. NMI Holdings | JINS HOLDINGS vs. Origin Agritech |
| Flight Centre vs. MeVis Medical Solutions | Flight Centre vs. Diamyd Medical AB | Flight Centre vs. DICKS Sporting Goods | Flight Centre vs. CVR Medical Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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