Correlation Between American Balanced and JNS Holdings
Can any of the company-specific risk be diversified away by investing in both American Balanced and JNS 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 American Balanced and JNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Balanced and JNS Holdings Corp, you can compare the effects of market volatilities on American Balanced and JNS 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 American Balanced with a short position of JNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and JNS Holdings.
Diversification Opportunities for American Balanced and JNS Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and JNS is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced and JNS Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNS Holdings Corp and American Balanced 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 American Balanced are associated (or correlated) with JNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNS Holdings Corp has no effect on the direction of American Balanced i.e., American Balanced and JNS Holdings go up and down completely randomly.
Pair Corralation between American Balanced and JNS Holdings
Assuming the 90 days horizon American Balanced is expected to generate 0.2 times more return on investment than JNS Holdings. However, American Balanced is 5.01 times less risky than JNS Holdings. It trades about 0.22 of its potential returns per unit of risk. JNS Holdings Corp is currently generating about -0.04 per unit of risk. If you would invest 3,439 in American Balanced on November 3, 2024 and sell it today you would earn a total of 94.00 from holding American Balanced or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Balanced vs. JNS Holdings Corp
Performance |
| Timeline |
| American Balanced |
| JNS Holdings Corp |
American Balanced and JNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and JNS Holdings
The main advantage of trading using opposite American Balanced and JNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced position performs unexpectedly, JNS 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 JNS Holdings will offset losses from the drop in JNS Holdings' long position.| American Balanced vs. Income Fund Of | American Balanced vs. Capital Income Builder | American Balanced vs. Capital World Growth | American Balanced vs. Growth Fund Of |
| JNS Holdings vs. Digital Locations | JNS Holdings vs. Orion Group Holdings | JNS Holdings vs. Vinci SA ADR | JNS Holdings vs. Agrify Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |