Correlation Between JINS HOLDINGS and Swatch
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and Swatch 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 Swatch 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 The Swatch Group, you can compare the effects of market volatilities on JINS HOLDINGS and Swatch 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 Swatch. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and Swatch.
Diversification Opportunities for JINS HOLDINGS and Swatch
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JINS and Swatch is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and The Swatch Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swatch Group 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 Swatch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swatch Group has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and Swatch go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and Swatch
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 1.73 times more return on investment than Swatch. However, JINS HOLDINGS is 1.73 times more volatile than The Swatch Group. It trades about 0.05 of its potential returns per unit of risk. The Swatch Group is currently generating about -0.01 per unit of risk. If you would invest 1,525 in JINS HOLDINGS INC on September 26, 2024 and sell it today you would earn a total of 2,495 from holding JINS HOLDINGS INC or generate 163.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. The Swatch Group
Performance |
| Timeline |
| JINS HOLDINGS INC |
| Swatch Group |
JINS HOLDINGS and Swatch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and Swatch
The main advantage of trading using opposite JINS HOLDINGS and Swatch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, Swatch 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 Swatch will offset losses from the drop in Swatch's long position.| JINS HOLDINGS vs. Intuitive Surgical | JINS HOLDINGS vs. Resmed Inc DRC | JINS HOLDINGS vs. ResMed Inc | JINS HOLDINGS vs. Sartorius Stedim Biotech |
| Swatch vs. LVMH Mot Hennessy | Swatch vs. Herms International Socit | Swatch vs. CHRISTIAN DIOR ADR14EO2 | Swatch vs. Christian Dior SE |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |