Correlation Between CNJ Capital and Elixxer
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Elixxer 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 CNJ Capital and Elixxer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Elixxer, you can compare the effects of market volatilities on CNJ Capital and Elixxer 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 CNJ Capital with a short position of Elixxer. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Elixxer.
Diversification Opportunities for CNJ Capital and Elixxer
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between CNJ and Elixxer is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Elixxer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elixxer and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with Elixxer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elixxer has no effect on the direction of CNJ Capital i.e., CNJ Capital and Elixxer go up and down completely randomly.
Pair Corralation between CNJ Capital and Elixxer
If you would invest 16.00 in CNJ Capital Investments on September 12, 2024 and sell it today you would earn a total of 30.00 from holding CNJ Capital Investments or generate 187.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. Elixxer
Performance |
| Timeline |
| CNJ Capital Investments |
| Elixxer |
CNJ Capital and Elixxer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Elixxer
The main advantage of trading using opposite CNJ Capital and Elixxer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Elixxer 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 Elixxer will offset losses from the drop in Elixxer's long position.| CNJ Capital vs. Brompton Lifeco Split | CNJ Capital vs. North American Financial | CNJ Capital vs. Prime Dividend Corp | CNJ Capital vs. Financial 15 Split |
| Elixxer vs. Upstart Investments | Elixxer vs. CNJ Capital Investments | Elixxer vs. Data Communications Management | Elixxer vs. Western Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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