Correlation Between Concrete Pumping and JGC Corp
Can any of the company-specific risk be diversified away by investing in both Concrete Pumping 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 Concrete Pumping and JGC Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concrete Pumping Holdings and JGC Corp, you can compare the effects of market volatilities on Concrete Pumping 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 Concrete Pumping with a short position of JGC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concrete Pumping and JGC Corp.
Diversification Opportunities for Concrete Pumping and JGC Corp
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Concrete and JGC is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Concrete Pumping Holdings and JGC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGC Corp and Concrete Pumping 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 Concrete Pumping Holdings 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 Concrete Pumping i.e., Concrete Pumping and JGC Corp go up and down completely randomly.
Pair Corralation between Concrete Pumping and JGC Corp
If you would invest 2.90 in Concrete Pumping Holdings on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Concrete Pumping Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Concrete Pumping Holdings vs. JGC Corp
Performance |
| Timeline |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JGC Corp |
Concrete Pumping and JGC Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concrete Pumping and JGC Corp
The main advantage of trading using opposite Concrete Pumping and JGC Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concrete Pumping 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.| Concrete Pumping vs. Peoples Educational Holdings | Concrete Pumping vs. Ihuman Inc | Concrete Pumping vs. East Africa Metals | Concrete Pumping vs. Lion One Metals |
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.
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