Correlation Between Cardno and JNS Holdings
Can any of the company-specific risk be diversified away by investing in both Cardno and JNS 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 Cardno and JNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardno Limited and JNS Holdings Corp, you can compare the effects of market volatilities on Cardno and JNS 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 Cardno with a short position of JNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardno and JNS Holdings.
Diversification Opportunities for Cardno and JNS Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardno and JNS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cardno Limited and JNS Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNS Holdings Corp and Cardno 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 Cardno Limited are associated (or correlated) with JNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNS Holdings Corp has no effect on the direction of Cardno i.e., Cardno and JNS Holdings go up and down completely randomly.
Pair Corralation between Cardno and JNS Holdings
Assuming the 90 days horizon Cardno Limited is expected to generate 1.66 times more return on investment than JNS Holdings. However, Cardno is 1.66 times more volatile than JNS Holdings Corp. It trades about 0.06 of its potential returns per unit of risk. JNS Holdings Corp is currently generating about 0.02 per unit of risk. If you would invest 11.00 in Cardno Limited on October 21, 2024 and sell it today you would earn a total of 6.00 from holding Cardno Limited or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.15% |
| Values | Daily Returns |
Cardno Limited vs. JNS Holdings Corp
Performance |
| Timeline |
| Cardno Limited |
| JNS Holdings Corp |
Cardno and JNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardno and JNS Holdings
The main advantage of trading using opposite Cardno and JNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardno position performs unexpectedly, JNS 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 JNS Holdings will offset losses from the drop in JNS Holdings' long position.The idea behind Cardno Limited and JNS Holdings Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JNS Holdings vs. ACS Actividades de | JNS Holdings vs. ACS Actividades De | JNS Holdings vs. Arcadis NV | JNS Holdings vs. Fubotv Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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