Correlation Between Conestoga Small and Jackson Square
Can any of the company-specific risk be diversified away by investing in both Conestoga Small and Jackson Square 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 Conestoga Small and Jackson Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conestoga Small Cap and Jackson Square Smid Cap, you can compare the effects of market volatilities on Conestoga Small and Jackson Square 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 Conestoga Small with a short position of Jackson Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conestoga Small and Jackson Square.
Diversification Opportunities for Conestoga Small and Jackson Square
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Conestoga and Jackson is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Conestoga Small Cap and Jackson Square Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Square Smid and Conestoga Small 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 Conestoga Small Cap are associated (or correlated) with Jackson Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Square Smid has no effect on the direction of Conestoga Small i.e., Conestoga Small and Jackson Square go up and down completely randomly.
Pair Corralation between Conestoga Small and Jackson Square
Assuming the 90 days horizon Conestoga Small Cap is expected to generate 1.03 times more return on investment than Jackson Square. However, Conestoga Small is 1.03 times more volatile than Jackson Square Smid Cap. It trades about 0.06 of its potential returns per unit of risk. Jackson Square Smid Cap is currently generating about 0.04 per unit of risk. If you would invest 5,890 in Conestoga Small Cap on September 12, 2024 and sell it today you would earn a total of 2,353 from holding Conestoga Small Cap or generate 39.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conestoga Small Cap vs. Jackson Square Smid Cap
Performance |
| Timeline |
| Conestoga Small Cap |
| Jackson Square Smid |
Conestoga Small and Jackson Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conestoga Small and Jackson Square
The main advantage of trading using opposite Conestoga Small and Jackson Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conestoga Small position performs unexpectedly, Jackson Square 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 Jackson Square will offset losses from the drop in Jackson Square's long position.| Conestoga Small vs. Ab Small Cap | Conestoga Small vs. Vy Columbia Small | Conestoga Small vs. Ab Small Cap | Conestoga Small vs. Lebenthal Lisanti Small |
| Jackson Square vs. T Rowe Price | Jackson Square vs. T Rowe Price | Jackson Square vs. SCOR PK | Jackson Square vs. Morningstar Unconstrained Allocation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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