Correlation Between Atomera and JSR
Can any of the company-specific risk be diversified away by investing in both Atomera and JSR 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 Atomera and JSR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atomera and JSR Corporation, you can compare the effects of market volatilities on Atomera and JSR 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 Atomera with a short position of JSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atomera and JSR.
Diversification Opportunities for Atomera and JSR
Poor diversification
The 3 months correlation between Atomera and JSR is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Atomera and JSR Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSR Corporation and Atomera 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 Atomera are associated (or correlated) with JSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSR Corporation has no effect on the direction of Atomera i.e., Atomera and JSR go up and down completely randomly.
Pair Corralation between Atomera and JSR
Given the investment horizon of 90 days Atomera is expected to generate 14.49 times more return on investment than JSR. However, Atomera is 14.49 times more volatile than JSR Corporation. It trades about 0.02 of its potential returns per unit of risk. JSR Corporation is currently generating about 0.09 per unit of risk. If you would invest 678.00 in Atomera on September 2, 2024 and sell it today you would lose (60.00) from holding Atomera or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.84% |
| Values | Daily Returns |
Atomera vs. JSR Corp.
Performance |
| Timeline |
| Atomera |
| JSR Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atomera and JSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atomera and JSR
The main advantage of trading using opposite Atomera and JSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atomera position performs unexpectedly, JSR 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 JSR will offset losses from the drop in JSR's long position.| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
| JSR vs. Chemours Co | JSR vs. International Flavors Fragrances | JSR vs. Air Products and | JSR vs. PPG Industries |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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