Correlation Between JBT Old and Nidec
Can any of the company-specific risk be diversified away by investing in both JBT Old and Nidec 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 JBT Old and Nidec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBT Old and Nidec, you can compare the effects of market volatilities on JBT Old and Nidec 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 JBT Old with a short position of Nidec. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBT Old and Nidec.
Diversification Opportunities for JBT Old and Nidec
Pay attention - limited upside
The 3 months correlation between JBT and Nidec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JBT Old and Nidec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nidec and JBT Old 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 JBT Old are associated (or correlated) with Nidec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nidec has no effect on the direction of JBT Old i.e., JBT Old and Nidec go up and down completely randomly.
Pair Corralation between JBT Old and Nidec
If you would invest (100.00) in Nidec on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Nidec or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBT Old vs. Nidec
Performance |
| Timeline |
| JBT Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Nidec |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
JBT Old and Nidec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBT Old and Nidec
The main advantage of trading using opposite JBT Old and Nidec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBT Old position performs unexpectedly, Nidec 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 Nidec will offset losses from the drop in Nidec's long position.| JBT Old vs. Flowserve | JBT Old vs. Franklin Electric Co | JBT Old vs. ITT Inc | JBT Old vs. IDEX Corporation |
| Nidec vs. Daifuku Co | Nidec vs. Eaton PLC | Nidec vs. Yokogawa Electric Corp | Nidec vs. Vestas Wind Systems |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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