Correlation Between ACS Actividades and JGC Corp
Can any of the company-specific risk be diversified away by investing in both ACS Actividades and JGC Corp 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 ACS Actividades and JGC Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACS Actividades de and JGC Corp, you can compare the effects of market volatilities on ACS Actividades and JGC Corp 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 ACS Actividades with a short position of JGC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and JGC Corp.
Diversification Opportunities for ACS Actividades and JGC Corp
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ACS and JGC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades de and JGC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGC Corp and ACS Actividades 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 ACS Actividades de are associated (or correlated) with JGC Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JGC Corp has no effect on the direction of ACS Actividades i.e., ACS Actividades and JGC Corp go up and down completely randomly.
Pair Corralation between ACS Actividades and JGC Corp
Assuming the 90 days horizon ACS Actividades de is expected to generate 0.05 times more return on investment than JGC Corp. However, ACS Actividades de is 20.46 times less risky than JGC Corp. It trades about 0.21 of its potential returns per unit of risk. JGC Corp is currently generating about -0.05 per unit of risk. If you would invest 4,500 in ACS Actividades de on August 25, 2024 and sell it today you would earn a total of 33.00 from holding ACS Actividades de or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACS Actividades de vs. JGC Corp
Performance |
| Timeline |
| ACS Actividades de |
| JGC Corp |
ACS Actividades and JGC Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACS Actividades and JGC Corp
The main advantage of trading using opposite ACS Actividades and JGC Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACS Actividades position performs unexpectedly, JGC Corp 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 JGC Corp will offset losses from the drop in JGC Corp's long position.| ACS Actividades vs. Acciona SA | ACS Actividades vs. JGC Corp | ACS Actividades vs. Kajima Corp ADR | ACS Actividades vs. ACS Actividades De |
| JGC Corp vs. Bilfinger SE ADR | JGC Corp vs. ACS Actividades De | JGC Corp vs. Acciona SA | JGC Corp vs. ACS Actividades de |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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