Correlation Between JINS HOLDINGS and HOYA
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and HOYA 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 HOYA 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 HOYA Corporation, you can compare the effects of market volatilities on JINS HOLDINGS and HOYA 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 HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and HOYA.
Diversification Opportunities for JINS HOLDINGS and HOYA
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JINS and HOYA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and HOYA go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and HOYA
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 0.7 times more return on investment than HOYA. However, JINS HOLDINGS INC is 1.44 times less risky than HOYA. It trades about 0.07 of its potential returns per unit of risk. HOYA Corporation is currently generating about -0.05 per unit of risk. If you would invest 3,720 in JINS HOLDINGS INC on September 1, 2024 and sell it today you would earn a total of 80.00 from holding JINS HOLDINGS INC or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. HOYA Corp.
Performance |
| Timeline |
| JINS HOLDINGS INC |
| HOYA |
JINS HOLDINGS and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and HOYA
The main advantage of trading using opposite JINS HOLDINGS and HOYA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, HOYA 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 HOYA will offset losses from the drop in HOYA's long position.| JINS HOLDINGS vs. ESSILORLUXOTTICA 12ON | JINS HOLDINGS vs. Intuitive Surgical | JINS HOLDINGS vs. EssilorLuxottica Socit anonyme | JINS HOLDINGS vs. Becton Dickinson and |
| HOYA vs. ESSILORLUXOTTICA 12ON | HOYA vs. Intuitive Surgical | HOYA vs. EssilorLuxottica Socit anonyme | HOYA vs. Becton Dickinson and |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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