Correlation Between JE Cleantech and Ametek
Can any of the company-specific risk be diversified away by investing in both JE Cleantech and Ametek 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 JE Cleantech and Ametek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JE Cleantech Holdings and Ametek Inc, you can compare the effects of market volatilities on JE Cleantech and Ametek 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 JE Cleantech with a short position of Ametek. Check out your portfolio center. Please also check ongoing floating volatility patterns of JE Cleantech and Ametek.
Diversification Opportunities for JE Cleantech and Ametek
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCSE and Ametek is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding JE Cleantech Holdings and Ametek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ametek Inc and JE Cleantech 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 JE Cleantech Holdings are associated (or correlated) with Ametek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ametek Inc has no effect on the direction of JE Cleantech i.e., JE Cleantech and Ametek go up and down completely randomly.
Pair Corralation between JE Cleantech and Ametek
Given the investment horizon of 90 days JE Cleantech Holdings is expected to generate 7.61 times more return on investment than Ametek. However, JE Cleantech is 7.61 times more volatile than Ametek Inc. It trades about 0.03 of its potential returns per unit of risk. Ametek Inc is currently generating about 0.04 per unit of risk. If you would invest 222.00 in JE Cleantech Holdings on October 14, 2024 and sell it today you would lose (85.00) from holding JE Cleantech Holdings or give up 38.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JE Cleantech Holdings vs. Ametek Inc
Performance |
| Timeline |
| JE Cleantech Holdings |
| Ametek Inc |
JE Cleantech and Ametek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JE Cleantech and Ametek
The main advantage of trading using opposite JE Cleantech and Ametek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JE Cleantech position performs unexpectedly, Ametek 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 Ametek will offset losses from the drop in Ametek's long position.| JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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