Correlation Between I 80 and JEMTEC
Can any of the company-specific risk be diversified away by investing in both I 80 and JEMTEC 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 I 80 and JEMTEC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i 80 Gold Corp and JEMTEC Inc, you can compare the effects of market volatilities on I 80 and JEMTEC 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 I 80 with a short position of JEMTEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and JEMTEC.
Diversification Opportunities for I 80 and JEMTEC
Pay attention - limited upside
The 3 months correlation between IAU and JEMTEC is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding i 80 Gold Corp and JEMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEMTEC Inc and I 80 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 i 80 Gold Corp are associated (or correlated) with JEMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JEMTEC Inc has no effect on the direction of I 80 i.e., I 80 and JEMTEC go up and down completely randomly.
Pair Corralation between I 80 and JEMTEC
Assuming the 90 days trading horizon i 80 Gold Corp is expected to under-perform the JEMTEC. In addition to that, I 80 is 3.47 times more volatile than JEMTEC Inc. It trades about -0.01 of its total potential returns per unit of risk. JEMTEC Inc is currently generating about 0.08 per unit of volatility. If you would invest 81.00 in JEMTEC Inc on September 13, 2024 and sell it today you would earn a total of 5.00 from holding JEMTEC Inc or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
i 80 Gold Corp vs. JEMTEC Inc
Performance |
| Timeline |
| i 80 Gold |
| JEMTEC Inc |
I 80 and JEMTEC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and JEMTEC
The main advantage of trading using opposite I 80 and JEMTEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, JEMTEC 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 JEMTEC will offset losses from the drop in JEMTEC's long position.The idea behind i 80 Gold Corp and JEMTEC Inc 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.| JEMTEC vs. Goodfood Market Corp | JEMTEC vs. Cogeco Communications | JEMTEC vs. CVW CleanTech | JEMTEC vs. Verizon Communications CDR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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