Correlation Between JE Cleantech and Cavitation Techs
Can any of the company-specific risk be diversified away by investing in both JE Cleantech and Cavitation Techs 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 Cavitation Techs 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 Cavitation Techs, you can compare the effects of market volatilities on JE Cleantech and Cavitation Techs 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 Cavitation Techs. Check out your portfolio center. Please also check ongoing floating volatility patterns of JE Cleantech and Cavitation Techs.
Diversification Opportunities for JE Cleantech and Cavitation Techs
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between JCSE and Cavitation is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding JE Cleantech Holdings and Cavitation Techs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cavitation Techs 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 Cavitation Techs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cavitation Techs has no effect on the direction of JE Cleantech i.e., JE Cleantech and Cavitation Techs go up and down completely randomly.
Pair Corralation between JE Cleantech and Cavitation Techs
If you would invest 1.00 in Cavitation Techs on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cavitation Techs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JE Cleantech Holdings vs. Cavitation Techs
Performance |
| Timeline |
| JE Cleantech Holdings |
| Cavitation Techs |
JE Cleantech and Cavitation Techs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JE Cleantech and Cavitation Techs
The main advantage of trading using opposite JE Cleantech and Cavitation Techs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JE Cleantech position performs unexpectedly, Cavitation Techs 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 Cavitation Techs will offset losses from the drop in Cavitation Techs' long position.| JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial Corp |
| Cavitation Techs vs. Boxlight Corp Class | Cavitation Techs vs. Siyata Mobile | Cavitation Techs vs. ClearOne | Cavitation Techs vs. HUMANA INC |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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