Correlation Between Dow Jones and JNS Holdings
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and JNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and JNS Holdings Corp, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of JNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and JNS Holdings.
Diversification Opportunities for Dow Jones and JNS Holdings
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and JNS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and JNS Holdings go up and down completely randomly.
Pair Corralation between Dow Jones and JNS Holdings
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.13 times more return on investment than JNS Holdings. However, Dow Jones Industrial is 7.61 times less risky than JNS Holdings. It trades about 0.1 of its potential returns per unit of risk. JNS Holdings Corp is currently generating about -0.04 per unit of risk. If you would invest 4,290,695 in Dow Jones Industrial on October 22, 2024 and sell it today you would earn a total of 58,088 from holding Dow Jones Industrial or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Dow Jones Industrial vs. JNS Holdings Corp
Performance |
| Timeline |
Dow Jones and JNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
JNS Holdings Corp
Pair trading matchups for JNS Holdings
Pair Trading with Dow Jones and JNS Holdings
The main advantage of trading using opposite Dow Jones and JNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Nasdaq Inc | Dow Jones vs. Summit Materials | Dow Jones vs. Vulcan Materials | Dow Jones vs. Celsius Holdings |
| JNS Holdings vs. Digital Locations | JNS Holdings vs. Orion Group Holdings | JNS Holdings vs. Vinci SA ADR | JNS Holdings vs. Agrify Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance |