Correlation Between JCET Group and Great-Sun Foods
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By analyzing existing cross correlation between JCET Group Co and Great Sun Foods Co, you can compare the effects of market volatilities on JCET Group and Great-Sun Foods 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 JCET Group with a short position of Great-Sun Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCET Group and Great-Sun Foods.
Diversification Opportunities for JCET Group and Great-Sun Foods
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JCET and Great-Sun is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding JCET Group Co and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods and JCET Group 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 JCET Group Co are associated (or correlated) with Great-Sun Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of JCET Group i.e., JCET Group and Great-Sun Foods go up and down completely randomly.
Pair Corralation between JCET Group and Great-Sun Foods
Assuming the 90 days trading horizon JCET Group is expected to generate 1.04 times less return on investment than Great-Sun Foods. But when comparing it to its historical volatility, JCET Group Co is 1.01 times less risky than Great-Sun Foods. It trades about 0.22 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Great Sun Foods Co on November 7, 2024 and sell it today you would earn a total of 46.00 from holding Great Sun Foods Co or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCET Group Co vs. Great Sun Foods Co
Performance |
| Timeline |
| JCET Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Great Sun Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JCET Group and Great-Sun Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCET Group and Great-Sun Foods
The main advantage of trading using opposite JCET Group and Great-Sun Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCET Group position performs unexpectedly, Great-Sun Foods 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 Great-Sun Foods will offset losses from the drop in Great-Sun Foods' long position.The idea behind JCET Group Co and Great Sun Foods Co 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.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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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