Correlation Between Cass Information and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Cass Information and JINS HOLDINGS 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 Cass Information and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and JINS HOLDINGS INC, you can compare the effects of market volatilities on Cass Information and JINS HOLDINGS 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 Cass Information with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and JINS HOLDINGS.
Diversification Opportunities for Cass Information and JINS HOLDINGS
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cass and JINS is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and Cass Information 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 Cass Information Systems are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of Cass Information i.e., Cass Information and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between Cass Information and JINS HOLDINGS
Assuming the 90 days horizon Cass Information Systems is expected to generate 0.56 times more return on investment than JINS HOLDINGS. However, Cass Information Systems is 1.77 times less risky than JINS HOLDINGS. It trades about -0.13 of its potential returns per unit of risk. JINS HOLDINGS INC is currently generating about -0.12 per unit of risk. If you would invest 4,191 in Cass Information Systems on December 23, 2024 and sell it today you would lose (171.00) from holding Cass Information Systems or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. JINS HOLDINGS INC
Performance |
| Timeline |
| Cass Information Systems |
| JINS HOLDINGS INC |
Cass Information and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and JINS HOLDINGS
The main advantage of trading using opposite Cass Information and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| Cass Information vs. Universal Entertainment | Cass Information vs. GRIFFIN MINING LTD | Cass Information vs. Zijin Mining Group | Cass Information vs. Intermediate Capital Group |
| JINS HOLDINGS vs. SmarTone Telecommunications Holdings | JINS HOLDINGS vs. China Communications Services | JINS HOLDINGS vs. Charter Communications | JINS HOLDINGS vs. British American Tobacco |
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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