Correlation Between John Bean and Nano Nuclear
Can any of the company-specific risk be diversified away by investing in both John Bean and Nano Nuclear 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 John Bean and Nano Nuclear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Bean Technologies and Nano Nuclear Energy, you can compare the effects of market volatilities on John Bean and Nano Nuclear 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 John Bean with a short position of Nano Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Bean and Nano Nuclear.
Diversification Opportunities for John Bean and Nano Nuclear
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Nano is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding John Bean Technologies and Nano Nuclear Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Nuclear Energy and John Bean 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 John Bean Technologies are associated (or correlated) with Nano Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Nuclear Energy has no effect on the direction of John Bean i.e., John Bean and Nano Nuclear go up and down completely randomly.
Pair Corralation between John Bean and Nano Nuclear
Considering the 90-day investment horizon John Bean is expected to generate 27.34 times less return on investment than Nano Nuclear. But when comparing it to its historical volatility, John Bean Technologies is 6.47 times less risky than Nano Nuclear. It trades about 0.04 of its potential returns per unit of risk. Nano Nuclear Energy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 519.00 in Nano Nuclear Energy on August 27, 2024 and sell it today you would earn a total of 2,841 from holding Nano Nuclear Energy or generate 547.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 28.23% |
| Values | Daily Returns |
John Bean Technologies vs. Nano Nuclear Energy
Performance |
| Timeline |
| John Bean Technologies |
| Nano Nuclear Energy |
John Bean and Nano Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Bean and Nano Nuclear
The main advantage of trading using opposite John Bean and Nano Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Bean position performs unexpectedly, Nano Nuclear 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 Nano Nuclear will offset losses from the drop in Nano Nuclear's long position.| John Bean vs. Aquagold International | John Bean vs. Morningstar Unconstrained Allocation | John Bean vs. High Yield Municipal Fund | John Bean vs. Thrivent High Yield |
| Nano Nuclear vs. Barnes Group | Nano Nuclear vs. Crane Company | Nano Nuclear vs. Hillenbrand | Nano Nuclear vs. Ingersoll Rand |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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