Correlation Between JINS HOLDINGS and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated, you can compare the effects of market volatilities on JINS HOLDINGS and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and Corning Incorporated.
Diversification Opportunities for JINS HOLDINGS and Corning Incorporated
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JINS and Corning is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and Corning Incorporated go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and Corning Incorporated
Assuming the 90 days horizon JINS HOLDINGS is expected to generate 1.36 times less return on investment than Corning Incorporated. But when comparing it to its historical volatility, JINS HOLDINGS INC is 1.68 times less risky than Corning Incorporated. It trades about 0.21 of its potential returns per unit of risk. Corning Incorporated is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,258 in Corning Incorporated on August 27, 2024 and sell it today you would earn a total of 402.00 from holding Corning Incorporated or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. Corning Incorporated
Performance |
| Timeline |
| JINS HOLDINGS INC |
| Corning Incorporated |
JINS HOLDINGS and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and Corning Incorporated
The main advantage of trading using opposite JINS HOLDINGS and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| JINS HOLDINGS vs. Intuitive Surgical | JINS HOLDINGS vs. Superior Plus Corp | JINS HOLDINGS vs. NMI Holdings | JINS HOLDINGS vs. Origin Agritech |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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