Correlation Between Jat Holdings and Carson Cumberbatch
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By analyzing existing cross correlation between Jat Holdings PLC and Carson Cumberbatch PLC, you can compare the effects of market volatilities on Jat Holdings and Carson Cumberbatch 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 Jat Holdings with a short position of Carson Cumberbatch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Carson Cumberbatch.
Diversification Opportunities for Jat Holdings and Carson Cumberbatch
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jat and Carson is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Carson Cumberbatch PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carson Cumberbatch PLC and Jat Holdings 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 Jat Holdings PLC are associated (or correlated) with Carson Cumberbatch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carson Cumberbatch PLC has no effect on the direction of Jat Holdings i.e., Jat Holdings and Carson Cumberbatch go up and down completely randomly.
Pair Corralation between Jat Holdings and Carson Cumberbatch
Assuming the 90 days trading horizon Jat Holdings is expected to generate 1.52 times less return on investment than Carson Cumberbatch. In addition to that, Jat Holdings is 1.09 times more volatile than Carson Cumberbatch PLC. It trades about 0.1 of its total potential returns per unit of risk. Carson Cumberbatch PLC is currently generating about 0.17 per unit of volatility. If you would invest 28,475 in Carson Cumberbatch PLC on August 28, 2024 and sell it today you would earn a total of 4,525 from holding Carson Cumberbatch PLC or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 83.05% |
| Values | Daily Returns |
Jat Holdings PLC vs. Carson Cumberbatch PLC
Performance |
| Timeline |
| Jat Holdings PLC |
| Carson Cumberbatch PLC |
Jat Holdings and Carson Cumberbatch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Carson Cumberbatch
The main advantage of trading using opposite Jat Holdings and Carson Cumberbatch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings position performs unexpectedly, Carson Cumberbatch 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 Carson Cumberbatch will offset losses from the drop in Carson Cumberbatch's long position.| Jat Holdings vs. Convenience Foods PLC | Jat Holdings vs. Pegasus Hotels of | Jat Holdings vs. Arpico Insurance | Jat Holdings vs. RENUKA FOODS PLC |
| Carson Cumberbatch vs. Softlogic Life Insurance | Carson Cumberbatch vs. Singhe Hospitals | Carson Cumberbatch vs. ACL Plastics PLC | Carson Cumberbatch vs. Ceylon Hospitals PLC |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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