Correlation Between JB Hi and Ariadne Australia
Can any of the company-specific risk be diversified away by investing in both JB Hi and Ariadne Australia 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 JB Hi and Ariadne Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JB Hi Fi and Ariadne Australia, you can compare the effects of market volatilities on JB Hi and Ariadne Australia 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 JB Hi with a short position of Ariadne Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hi and Ariadne Australia.
Diversification Opportunities for JB Hi and Ariadne Australia
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBH and Ariadne is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding JB Hi Fi and Ariadne Australia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ariadne Australia and JB Hi 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 JB Hi Fi are associated (or correlated) with Ariadne Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ariadne Australia has no effect on the direction of JB Hi i.e., JB Hi and Ariadne Australia go up and down completely randomly.
Pair Corralation between JB Hi and Ariadne Australia
Assuming the 90 days trading horizon JB Hi Fi is expected to generate 0.81 times more return on investment than Ariadne Australia. However, JB Hi Fi is 1.23 times less risky than Ariadne Australia. It trades about 0.17 of its potential returns per unit of risk. Ariadne Australia is currently generating about 0.0 per unit of risk. If you would invest 4,765 in JB Hi Fi on September 4, 2024 and sell it today you would earn a total of 4,353 from holding JB Hi Fi or generate 91.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hi Fi vs. Ariadne Australia
Performance |
| Timeline |
| JB Hi Fi |
| Ariadne Australia |
JB Hi and Ariadne Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hi and Ariadne Australia
The main advantage of trading using opposite JB Hi and Ariadne Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hi position performs unexpectedly, Ariadne Australia 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 Ariadne Australia will offset losses from the drop in Ariadne Australia's long position.| JB Hi vs. Inventis | JB Hi vs. Pengana Private Equity | JB Hi vs. PM Capital Global | JB Hi vs. Macquarie Group Ltd |
| Ariadne Australia vs. Stelar Metals | Ariadne Australia vs. Thorney Technologies | Ariadne Australia vs. Macquarie Technology Group | Ariadne Australia vs. GreenX Metals |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |