Correlation Between JINS HOLDINGS and Heineken
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and Heineken 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 Heineken 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 Heineken NV, you can compare the effects of market volatilities on JINS HOLDINGS and Heineken 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 Heineken. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and Heineken.
Diversification Opportunities for JINS HOLDINGS and Heineken
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JINS and Heineken is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and Heineken NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken NV 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 Heineken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken NV has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and Heineken go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and Heineken
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 2.47 times more return on investment than Heineken. However, JINS HOLDINGS is 2.47 times more volatile than Heineken NV. It trades about 0.16 of its potential returns per unit of risk. Heineken NV is currently generating about -0.18 per unit of risk. If you would invest 2,160 in JINS HOLDINGS INC on August 25, 2024 and sell it today you would earn a total of 1,720 from holding JINS HOLDINGS INC or generate 79.63% 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. Heineken NV
Performance |
| Timeline |
| JINS HOLDINGS INC |
| Heineken NV |
JINS HOLDINGS and Heineken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and Heineken
The main advantage of trading using opposite JINS HOLDINGS and Heineken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, Heineken 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 Heineken will offset losses from the drop in Heineken's long position.| JINS HOLDINGS vs. Intuitive Surgical | JINS HOLDINGS vs. HOYA Corporation | JINS HOLDINGS vs. Superior Plus Corp | JINS HOLDINGS vs. NMI Holdings |
| Heineken vs. Plastic Omnium | Heineken vs. Diamondrock Hospitality Co | Heineken vs. HEALTHCARE REAL A | Heineken vs. Cardinal Health |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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