Correlation Between Ingersoll Rand and JE Cleantech
Can any of the company-specific risk be diversified away by investing in both Ingersoll Rand and JE Cleantech 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 Ingersoll Rand and JE Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingersoll Rand and JE Cleantech Holdings, you can compare the effects of market volatilities on Ingersoll Rand and JE Cleantech 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 Ingersoll Rand with a short position of JE Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingersoll Rand and JE Cleantech.
Diversification Opportunities for Ingersoll Rand and JE Cleantech
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ingersoll and JCSE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ingersoll Rand and JE Cleantech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JE Cleantech Holdings and Ingersoll Rand 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 Ingersoll Rand are associated (or correlated) with JE Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JE Cleantech Holdings has no effect on the direction of Ingersoll Rand i.e., Ingersoll Rand and JE Cleantech go up and down completely randomly.
Pair Corralation between Ingersoll Rand and JE Cleantech
Allowing for the 90-day total investment horizon Ingersoll Rand is expected to under-perform the JE Cleantech. But the stock apears to be less risky and, when comparing its historical volatility, Ingersoll Rand is 17.27 times less risky than JE Cleantech. The stock trades about -0.19 of its potential returns per unit of risk. The JE Cleantech Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 115.00 in JE Cleantech Holdings on September 12, 2024 and sell it today you would earn a total of 27.00 from holding JE Cleantech Holdings or generate 23.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingersoll Rand vs. JE Cleantech Holdings
Performance |
| Timeline |
| Ingersoll Rand |
| JE Cleantech Holdings |
Ingersoll Rand and JE Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingersoll Rand and JE Cleantech
The main advantage of trading using opposite Ingersoll Rand and JE Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingersoll Rand position performs unexpectedly, JE Cleantech 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 JE Cleantech will offset losses from the drop in JE Cleantech's long position.| Ingersoll Rand vs. IDEX Corporation | Ingersoll Rand vs. Flowserve | Ingersoll Rand vs. Donaldson | Ingersoll Rand vs. Franklin Electric Co |
| JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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