Correlation Between JINS HOLDINGS and Klöckner
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and Klöckner 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 Klöckner 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 Klckner Co SE, you can compare the effects of market volatilities on JINS HOLDINGS and Klöckner 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 Klöckner. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and Klöckner.
Diversification Opportunities for JINS HOLDINGS and Klöckner
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JINS and Klöckner is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and Klckner Co SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klckner Co SE 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 Klöckner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klckner Co SE has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and Klöckner go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and Klöckner
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 1.52 times more return on investment than Klöckner. However, JINS HOLDINGS is 1.52 times more volatile than Klckner Co SE. It trades about 0.06 of its potential returns per unit of risk. Klckner Co SE is currently generating about -0.05 per unit of risk. If you would invest 2,640 in JINS HOLDINGS INC on September 2, 2024 and sell it today you would earn a total of 1,160 from holding JINS HOLDINGS INC or generate 43.94% 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. Klckner Co SE
Performance |
| Timeline |
| JINS HOLDINGS INC |
| Klckner Co SE |
JINS HOLDINGS and Klöckner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and Klöckner
The main advantage of trading using opposite JINS HOLDINGS and Klöckner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, Klöckner 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 Klöckner will offset losses from the drop in Klöckner's long position.The idea behind JINS HOLDINGS INC and Klckner Co SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Klöckner vs. AUST AGRICULTURAL | Klöckner vs. Granite Construction | Klöckner vs. Monster Beverage Corp | Klöckner vs. Australian Agricultural |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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