Correlation Between Jacob Internet and Azzad Wise
Can any of the company-specific risk be diversified away by investing in both Jacob Internet and Azzad Wise 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 Jacob Internet and Azzad Wise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Internet Fund and Azzad Wise Capital, you can compare the effects of market volatilities on Jacob Internet and Azzad Wise 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 Jacob Internet with a short position of Azzad Wise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Internet and Azzad Wise.
Diversification Opportunities for Jacob Internet and Azzad Wise
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacob and Azzad is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Internet Fund and Azzad Wise Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azzad Wise Capital and Jacob Internet 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 Jacob Internet Fund are associated (or correlated) with Azzad Wise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azzad Wise Capital has no effect on the direction of Jacob Internet i.e., Jacob Internet and Azzad Wise go up and down completely randomly.
Pair Corralation between Jacob Internet and Azzad Wise
Assuming the 90 days horizon Jacob Internet Fund is expected to generate 20.93 times more return on investment than Azzad Wise. However, Jacob Internet is 20.93 times more volatile than Azzad Wise Capital. It trades about 0.16 of its potential returns per unit of risk. Azzad Wise Capital is currently generating about 0.32 per unit of risk. If you would invest 595.00 in Jacob Internet Fund on November 2, 2024 and sell it today you would earn a total of 38.00 from holding Jacob Internet Fund or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jacob Internet Fund vs. Azzad Wise Capital
Performance |
| Timeline |
| Jacob Internet |
| Azzad Wise Capital |
Jacob Internet and Azzad Wise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Internet and Azzad Wise
The main advantage of trading using opposite Jacob Internet and Azzad Wise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Internet position performs unexpectedly, Azzad Wise 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 Azzad Wise will offset losses from the drop in Azzad Wise's long position.| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
| Azzad Wise vs. Jp Morgan Smartretirement | Azzad Wise vs. Calvert Moderate Allocation | Azzad Wise vs. Voya Target Retirement | Azzad Wise vs. Great West Moderately Aggressive |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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