Correlation Between JonDeTech Sensors and Ellen AB
Can any of the company-specific risk be diversified away by investing in both JonDeTech Sensors and Ellen AB 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 JonDeTech Sensors and Ellen AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JonDeTech Sensors and Ellen AB, you can compare the effects of market volatilities on JonDeTech Sensors and Ellen AB 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 JonDeTech Sensors with a short position of Ellen AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of JonDeTech Sensors and Ellen AB.
Diversification Opportunities for JonDeTech Sensors and Ellen AB
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JonDeTech and Ellen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding JonDeTech Sensors and Ellen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellen AB and JonDeTech Sensors 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 JonDeTech Sensors are associated (or correlated) with Ellen AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellen AB has no effect on the direction of JonDeTech Sensors i.e., JonDeTech Sensors and Ellen AB go up and down completely randomly.
Pair Corralation between JonDeTech Sensors and Ellen AB
Assuming the 90 days trading horizon JonDeTech Sensors is expected to generate 2.27 times more return on investment than Ellen AB. However, JonDeTech Sensors is 2.27 times more volatile than Ellen AB. It trades about 0.02 of its potential returns per unit of risk. Ellen AB is currently generating about 0.04 per unit of risk. If you would invest 538.00 in JonDeTech Sensors on August 26, 2024 and sell it today you would lose (280.00) from holding JonDeTech Sensors or give up 52.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.26% |
| Values | Daily Returns |
JonDeTech Sensors vs. Ellen AB
Performance |
| Timeline |
| JonDeTech Sensors |
| Ellen AB |
JonDeTech Sensors and Ellen AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JonDeTech Sensors and Ellen AB
The main advantage of trading using opposite JonDeTech Sensors and Ellen AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JonDeTech Sensors position performs unexpectedly, Ellen AB 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 Ellen AB will offset losses from the drop in Ellen AB's long position.| JonDeTech Sensors vs. Divio Technologies AB | JonDeTech Sensors vs. XMReality AB | JonDeTech Sensors vs. KABE Group AB | JonDeTech Sensors vs. IAR Systems Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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