Correlation Between USWE SPORTS and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and JINS HOLDINGS 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 USWE SPORTS and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and JINS HOLDINGS INC, you can compare the effects of market volatilities on USWE SPORTS and JINS HOLDINGS 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 USWE SPORTS with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and JINS HOLDINGS.
Diversification Opportunities for USWE SPORTS and JINS HOLDINGS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between USWE and JINS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between USWE SPORTS and JINS HOLDINGS
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the JINS HOLDINGS. In addition to that, USWE SPORTS is 1.14 times more volatile than JINS HOLDINGS INC. It trades about -0.05 of its total potential returns per unit of risk. JINS HOLDINGS INC is currently generating about 0.09 per unit of volatility. If you would invest 2,560 in JINS HOLDINGS INC on November 3, 2024 and sell it today you would earn a total of 1,780 from holding JINS HOLDINGS INC or generate 69.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
USWE SPORTS AB vs. JINS HOLDINGS INC
Performance |
| Timeline |
| USWE SPORTS AB |
| JINS HOLDINGS INC |
USWE SPORTS and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and JINS HOLDINGS
The main advantage of trading using opposite USWE SPORTS and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| USWE SPORTS vs. OPKO HEALTH | USWE SPORTS vs. Planet Fitness | USWE SPORTS vs. OPERA SOFTWARE | USWE SPORTS vs. Phibro Animal Health |
| JINS HOLDINGS vs. Tyson Foods | JINS HOLDINGS vs. United Natural Foods | JINS HOLDINGS vs. Performance Food Group | JINS HOLDINGS vs. Harmony Gold Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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