Correlation Between Centrais Electricas and JMT Network
Can any of the company-specific risk be diversified away by investing in both Centrais Electricas and JMT Network 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 Centrais Electricas and JMT Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrais Electricas Brasileiras and JMT Network Services, you can compare the effects of market volatilities on Centrais Electricas and JMT Network 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 Centrais Electricas with a short position of JMT Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrais Electricas and JMT Network.
Diversification Opportunities for Centrais Electricas and JMT Network
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centrais and JMT is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Centrais Electricas Brasileira and JMT Network Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JMT Network Services and Centrais Electricas 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 Centrais Electricas Brasileiras are associated (or correlated) with JMT Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JMT Network Services has no effect on the direction of Centrais Electricas i.e., Centrais Electricas and JMT Network go up and down completely randomly.
Pair Corralation between Centrais Electricas and JMT Network
Considering the 90-day investment horizon Centrais Electricas Brasileiras is expected to generate 0.39 times more return on investment than JMT Network. However, Centrais Electricas Brasileiras is 2.57 times less risky than JMT Network. It trades about 0.35 of its potential returns per unit of risk. JMT Network Services is currently generating about 0.04 per unit of risk. If you would invest 603.00 in Centrais Electricas Brasileiras on December 9, 2024 and sell it today you would earn a total of 69.00 from holding Centrais Electricas Brasileiras or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centrais Electricas Brasileira vs. JMT Network Services
Performance |
| Timeline |
| Centrais Electricas |
| JMT Network Services |
Centrais Electricas and JMT Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrais Electricas and JMT Network
The main advantage of trading using opposite Centrais Electricas and JMT Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrais Electricas position performs unexpectedly, JMT Network 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 JMT Network will offset losses from the drop in JMT Network's long position.| Centrais Electricas vs. Genie Energy | ||
| Centrais Electricas vs. Central Puerto SA | ||
| Centrais Electricas vs. Korea Electric Power | ||
| Centrais Electricas vs. Empresa Distribuidora y |
| JMT Network vs. Jay Mart Public | ||
| JMT Network vs. Com7 PCL | ||
| JMT Network vs. KCE Electronics Public | ||
| JMT Network vs. Muangthai Capital Public |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |