Correlation Between Aecom Technology and JNS Holdings
Can any of the company-specific risk be diversified away by investing in both Aecom Technology 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 Aecom Technology and JNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aecom Technology and JNS Holdings Corp, you can compare the effects of market volatilities on Aecom Technology 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 Aecom Technology with a short position of JNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aecom Technology and JNS Holdings.
Diversification Opportunities for Aecom Technology and JNS Holdings
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aecom and JNS is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aecom Technology 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 Aecom Technology 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 Aecom Technology 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 Aecom Technology i.e., Aecom Technology and JNS Holdings go up and down completely randomly.
Pair Corralation between Aecom Technology and JNS Holdings
Considering the 90-day investment horizon Aecom Technology is expected to generate 0.24 times more return on investment than JNS Holdings. However, Aecom Technology is 4.2 times less risky than JNS Holdings. It trades about 0.21 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 10,737 in Aecom Technology on August 31, 2024 and sell it today you would earn a total of 937.00 from holding Aecom Technology or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aecom Technology vs. JNS Holdings Corp
Performance |
| Timeline |
| Aecom Technology |
| JNS Holdings Corp |
Aecom Technology and JNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aecom Technology and JNS Holdings
The main advantage of trading using opposite Aecom Technology and JNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aecom Technology 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.| Aecom Technology vs. CRA International | Aecom Technology vs. Huron Consulting Group | Aecom Technology vs. Forrester Research | Aecom Technology vs. Resources Connection |
| JNS Holdings vs. Orion Group Holdings | JNS Holdings vs. Agrify Corp | JNS Holdings vs. Matrix Service Co | JNS Holdings vs. MYR Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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