Correlation Between CNJ Capital and American Hotel
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and American Hotel 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 American Hotel 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 American Hotel Income, you can compare the effects of market volatilities on CNJ Capital and American Hotel 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 American Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and American Hotel.
Diversification Opportunities for CNJ Capital and American Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and American Hotel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Hotel Income 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 American Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Hotel Income has no effect on the direction of CNJ Capital i.e., CNJ Capital and American Hotel go up and down completely randomly.
Pair Corralation between CNJ Capital and American Hotel
If you would invest 46.00 in CNJ Capital Investments on September 19, 2024 and sell it today you would earn a total of 0.00 from holding CNJ Capital Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. American Hotel Income
Performance |
| Timeline |
| CNJ Capital Investments |
| American Hotel Income |
CNJ Capital and American Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and American Hotel
The main advantage of trading using opposite CNJ Capital and American Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, American Hotel 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 American Hotel will offset losses from the drop in American Hotel's long position.| CNJ Capital vs. Quipt Home Medical | CNJ Capital vs. Doman Building Materials | CNJ Capital vs. Nicola Mining | CNJ Capital vs. Upstart Investments |
| American Hotel vs. Advent Wireless | American Hotel vs. Lion One Metals | American Hotel vs. CNJ Capital Investments | American Hotel vs. North American Construction |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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