Correlation Between JBDI Holdings and Rectitude Holdings
Can any of the company-specific risk be diversified away by investing in both JBDI Holdings and Rectitude Holdings 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 JBDI Holdings and Rectitude Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBDI Holdings Limited and Rectitude Holdings Ltd, you can compare the effects of market volatilities on JBDI Holdings and Rectitude Holdings 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 JBDI Holdings with a short position of Rectitude Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBDI Holdings and Rectitude Holdings.
Diversification Opportunities for JBDI Holdings and Rectitude Holdings
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between JBDI and Rectitude is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding JBDI Holdings Limited and Rectitude Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rectitude Holdings and JBDI 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 JBDI Holdings Limited are associated (or correlated) with Rectitude Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rectitude Holdings has no effect on the direction of JBDI Holdings i.e., JBDI Holdings and Rectitude Holdings go up and down completely randomly.
Pair Corralation between JBDI Holdings and Rectitude Holdings
Given the investment horizon of 90 days JBDI Holdings Limited is expected to under-perform the Rectitude Holdings. In addition to that, JBDI Holdings is 3.84 times more volatile than Rectitude Holdings Ltd. It trades about -0.07 of its total potential returns per unit of risk. Rectitude Holdings Ltd is currently generating about 0.11 per unit of volatility. If you would invest 400.00 in Rectitude Holdings Ltd on September 12, 2024 and sell it today you would earn a total of 233.00 from holding Rectitude Holdings Ltd or generate 58.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.48% |
| Values | Daily Returns |
JBDI Holdings Limited vs. Rectitude Holdings Ltd
Performance |
| Timeline |
| JBDI Holdings Limited |
| Rectitude Holdings |
JBDI Holdings and Rectitude Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBDI Holdings and Rectitude Holdings
The main advantage of trading using opposite JBDI Holdings and Rectitude Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBDI Holdings position performs unexpectedly, Rectitude Holdings 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 Rectitude Holdings will offset losses from the drop in Rectitude Holdings' long position.| JBDI Holdings vs. Chewy Inc | JBDI Holdings vs. Arhaus Inc | JBDI Holdings vs. Xtant Medical Holdings | JBDI Holdings vs. Sonida Senior Living |
| Rectitude Holdings vs. ZOOZ Power Ltd | Rectitude Holdings vs. ZOOZ Power Ltd | Rectitude Holdings vs. JBDI Holdings Limited | Rectitude Holdings vs. Murphy USA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |