Correlation Between Ampleforth and JNC Resources
Can any of the company-specific risk be diversified away by investing in both Ampleforth and JNC Resources 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 Ampleforth and JNC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampleforth and JNC Resources, you can compare the effects of market volatilities on Ampleforth and JNC Resources 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 Ampleforth with a short position of JNC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampleforth and JNC Resources.
Diversification Opportunities for Ampleforth and JNC Resources
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ampleforth and JNC is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ampleforth and JNC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNC Resources and Ampleforth 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 Ampleforth are associated (or correlated) with JNC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNC Resources has no effect on the direction of Ampleforth i.e., Ampleforth and JNC Resources go up and down completely randomly.
Pair Corralation between Ampleforth and JNC Resources
Assuming the 90 days trading horizon Ampleforth is expected to generate 72.12 times less return on investment than JNC Resources. But when comparing it to its historical volatility, Ampleforth is 6.05 times less risky than JNC Resources. It trades about 0.02 of its potential returns per unit of risk. JNC Resources is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1.10 in JNC Resources on September 12, 2024 and sell it today you would earn a total of 0.60 from holding JNC Resources or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ampleforth vs. JNC Resources
Performance |
| Timeline |
| Ampleforth |
| JNC Resources |
Ampleforth and JNC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampleforth and JNC Resources
The main advantage of trading using opposite Ampleforth and JNC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampleforth position performs unexpectedly, JNC Resources 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 JNC Resources will offset losses from the drop in JNC Resources' long position.The idea behind Ampleforth and JNC Resources 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.| JNC Resources vs. Revival Gold | JNC Resources vs. Galiano Gold | JNC Resources vs. US Gold Corp | JNC Resources vs. HUMANA INC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |