Correlation Between Jewett-Cameron Trading and QCR Holdings
Can any of the company-specific risk be diversified away by investing in both Jewett-Cameron Trading and QCR Holdings 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 Jewett-Cameron Trading and QCR Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jewett Cameron Trading and QCR Holdings, you can compare the effects of market volatilities on Jewett-Cameron Trading and QCR Holdings 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 Jewett-Cameron Trading with a short position of QCR Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jewett-Cameron Trading and QCR Holdings.
Diversification Opportunities for Jewett-Cameron Trading and QCR Holdings
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jewett-Cameron and QCR is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jewett Cameron Trading and QCR Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QCR Holdings and Jewett-Cameron Trading 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 Jewett Cameron Trading are associated (or correlated) with QCR Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QCR Holdings has no effect on the direction of Jewett-Cameron Trading i.e., Jewett-Cameron Trading and QCR Holdings go up and down completely randomly.
Pair Corralation between Jewett-Cameron Trading and QCR Holdings
Assuming the 90 days horizon Jewett-Cameron Trading is expected to generate 5.18 times less return on investment than QCR Holdings. In addition to that, Jewett-Cameron Trading is 1.27 times more volatile than QCR Holdings. It trades about 0.01 of its total potential returns per unit of risk. QCR Holdings is currently generating about 0.07 per unit of volatility. If you would invest 5,064 in QCR Holdings on August 24, 2024 and sell it today you would earn a total of 4,203 from holding QCR Holdings or generate 83.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.55% |
| Values | Daily Returns |
Jewett Cameron Trading vs. QCR Holdings
Performance |
| Timeline |
| Jewett Cameron Trading |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| QCR Holdings |
Jewett-Cameron Trading and QCR Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jewett-Cameron Trading and QCR Holdings
The main advantage of trading using opposite Jewett-Cameron Trading and QCR Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jewett-Cameron Trading position performs unexpectedly, QCR Holdings 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 QCR Holdings will offset losses from the drop in QCR Holdings' long position.| Jewett-Cameron Trading vs. National Storm Recovery | Jewett-Cameron Trading vs. Kewaunee Scientific | Jewett-Cameron Trading vs. Nortech Systems Incorporated | Jewett-Cameron Trading vs. Gencor Industries |
| QCR Holdings vs. Community West Bancshares | QCR Holdings vs. First Financial Northwest | QCR Holdings vs. CF Bankshares | QCR Holdings vs. Home Federal Bancorp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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