Correlation Between Cboe UK and Jadestone Energy
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By analyzing existing cross correlation between Cboe UK Consumer and Jadestone Energy, you can compare the effects of market volatilities on Cboe UK and Jadestone Energy 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 Jadestone Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Jadestone Energy.
Diversification Opportunities for Cboe UK and Jadestone Energy
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cboe and Jadestone is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Jadestone Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadestone Energy 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 Jadestone Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadestone Energy has no effect on the direction of Cboe UK i.e., Cboe UK and Jadestone Energy go up and down completely randomly.
Pair Corralation between Cboe UK and Jadestone Energy
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.48 times more return on investment than Jadestone Energy. However, Cboe UK Consumer is 2.07 times less risky than Jadestone Energy. It trades about 0.47 of its potential returns per unit of risk. Jadestone Energy is currently generating about -0.06 per unit of risk. If you would invest 2,968,070 in Cboe UK Consumer on September 4, 2024 and sell it today you would earn a total of 297,839 from holding Cboe UK Consumer or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cboe UK Consumer vs. Jadestone Energy
Performance |
| Timeline |
Cboe UK and Jadestone Energy Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Jadestone Energy
Pair trading matchups for Jadestone Energy
Pair Trading with Cboe UK and Jadestone Energy
The main advantage of trading using opposite Cboe UK and Jadestone Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Jadestone Energy 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 Jadestone Energy will offset losses from the drop in Jadestone Energy's long position.| Cboe UK vs. Bisichi Mining PLC | Cboe UK vs. United Airlines Holdings | Cboe UK vs. Blackrock World Mining | Cboe UK vs. Greenroc Mining PLC |
| Jadestone Energy vs. Bankers Investment Trust | Jadestone Energy vs. Fresenius Medical Care | Jadestone Energy vs. Creo Medical Group | Jadestone Energy vs. Livermore Investments Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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