Correlation Between Cboe UK and Jost Werke
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By analyzing existing cross correlation between Cboe UK Consumer and Jost Werke AG, you can compare the effects of market volatilities on Cboe UK and Jost Werke 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 Cboe UK with a short position of Jost Werke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Jost Werke.
Diversification Opportunities for Cboe UK and Jost Werke
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cboe and Jost is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Jost Werke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jost Werke AG and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Jost Werke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jost Werke AG has no effect on the direction of Cboe UK i.e., Cboe UK and Jost Werke go up and down completely randomly.
Pair Corralation between Cboe UK and Jost Werke
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.76 times more return on investment than Jost Werke. However, Cboe UK Consumer is 1.32 times less risky than Jost Werke. It trades about 0.33 of its potential returns per unit of risk. Jost Werke AG is currently generating about -0.11 per unit of risk. If you would invest 2,948,589 in Cboe UK Consumer on August 24, 2024 and sell it today you would earn a total of 236,723 from holding Cboe UK Consumer or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Jost Werke AG
Performance |
| Timeline |
Cboe UK and Jost Werke Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Jost Werke AG
Pair trading matchups for Jost Werke
Pair Trading with Cboe UK and Jost Werke
The main advantage of trading using opposite Cboe UK and Jost Werke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Jost Werke 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 Jost Werke will offset losses from the drop in Jost Werke's long position.| Cboe UK vs. JLEN Environmental Assets | Cboe UK vs. Silvercorp Metals | Cboe UK vs. Eastinco Mining Exploration | Cboe UK vs. Dentsply Sirona |
| Jost Werke vs. Hansa Investment | Jost Werke vs. Tatton Asset Management | Jost Werke vs. Oakley Capital Investments | Jost Werke vs. Kinnevik Investment AB |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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