Correlation Between Brera Holdings and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both Brera Holdings and Jiangsu Expressway 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 Brera Holdings and Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brera Holdings PLC and Jiangsu Expressway, you can compare the effects of market volatilities on Brera Holdings and Jiangsu Expressway 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 Brera Holdings with a short position of Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brera Holdings and Jiangsu Expressway.
Diversification Opportunities for Brera Holdings and Jiangsu Expressway
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Brera and Jiangsu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Brera Holdings PLC and Jiangsu Expressway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway and Brera Holdings 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 Brera Holdings PLC are associated (or correlated) with Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Brera Holdings i.e., Brera Holdings and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Brera Holdings and Jiangsu Expressway
Given the investment horizon of 90 days Brera Holdings PLC is expected to under-perform the Jiangsu Expressway. In addition to that, Brera Holdings is 2.17 times more volatile than Jiangsu Expressway. It trades about -0.04 of its total potential returns per unit of risk. Jiangsu Expressway is currently generating about 0.04 per unit of volatility. If you would invest 110.00 in Jiangsu Expressway on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Jiangsu Expressway or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Brera Holdings PLC vs. Jiangsu Expressway
Performance |
| Timeline |
| Brera Holdings PLC |
| Jiangsu Expressway |
Brera Holdings and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brera Holdings and Jiangsu Expressway
The main advantage of trading using opposite Brera Holdings and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brera Holdings position performs unexpectedly, Jiangsu Expressway 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 Jiangsu Expressway will offset losses from the drop in Jiangsu Expressway's long position.| Brera Holdings vs. Reading International B | Brera Holdings vs. Marcus | Brera Holdings vs. Reading International | Brera Holdings vs. LiveOne |
| Jiangsu Expressway vs. Recursion Pharmaceuticals | Jiangsu Expressway vs. SoFi Technologies | Jiangsu Expressway vs. PayPal Holdings | Jiangsu Expressway vs. Intuitive Machines |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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