Correlation Between JE Cleantech and Nordson
Can any of the company-specific risk be diversified away by investing in both JE Cleantech and Nordson 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 Nordson 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 Nordson, you can compare the effects of market volatilities on JE Cleantech and Nordson 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 Nordson. Check out your portfolio center. Please also check ongoing floating volatility patterns of JE Cleantech and Nordson.
Diversification Opportunities for JE Cleantech and Nordson
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCSE and Nordson is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding JE Cleantech Holdings and Nordson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordson 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 Nordson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordson has no effect on the direction of JE Cleantech i.e., JE Cleantech and Nordson go up and down completely randomly.
Pair Corralation between JE Cleantech and Nordson
Given the investment horizon of 90 days JE Cleantech Holdings is expected to generate 7.55 times more return on investment than Nordson. However, JE Cleantech is 7.55 times more volatile than Nordson. It trades about 0.06 of its potential returns per unit of risk. Nordson is currently generating about 0.0 per unit of risk. If you would invest 90.00 in JE Cleantech Holdings on September 12, 2024 and sell it today you would earn a total of 52.00 from holding JE Cleantech Holdings or generate 57.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
JE Cleantech Holdings vs. Nordson
Performance |
| Timeline |
| JE Cleantech Holdings |
| Nordson |
JE Cleantech and Nordson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JE Cleantech and Nordson
The main advantage of trading using opposite JE Cleantech and Nordson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JE Cleantech position performs unexpectedly, Nordson 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 Nordson will offset losses from the drop in Nordson's long position.| JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial Corp |
| Nordson vs. Illinois Tool Works | Nordson vs. Pentair PLC | Nordson vs. Parker Hannifin | Nordson vs. Emerson Electric |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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