Correlation Between JonDeTech Sensors and IZafe Group
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By analyzing existing cross correlation between JonDeTech Sensors and iZafe Group AB, you can compare the effects of market volatilities on JonDeTech Sensors and IZafe Group 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 IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JonDeTech Sensors and IZafe Group.
Diversification Opportunities for JonDeTech Sensors and IZafe Group
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JonDeTech and IZafe is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding JonDeTech Sensors and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group 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 IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of JonDeTech Sensors i.e., JonDeTech Sensors and IZafe Group go up and down completely randomly.
Pair Corralation between JonDeTech Sensors and IZafe Group
Assuming the 90 days trading horizon JonDeTech Sensors is expected to under-perform the IZafe Group. In addition to that, JonDeTech Sensors is 1.38 times more volatile than iZafe Group AB. It trades about -0.02 of its total potential returns per unit of risk. iZafe Group AB is currently generating about 0.02 per unit of volatility. If you would invest 29.00 in iZafe Group AB on September 25, 2024 and sell it today you would lose (8.00) from holding iZafe Group AB or give up 27.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JonDeTech Sensors vs. iZafe Group AB
Performance |
| Timeline |
| JonDeTech Sensors |
| iZafe Group AB |
JonDeTech Sensors and IZafe Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JonDeTech Sensors and IZafe Group
The main advantage of trading using opposite JonDeTech Sensors and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JonDeTech Sensors position performs unexpectedly, IZafe Group 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 IZafe Group will offset losses from the drop in IZafe Group's long position.| JonDeTech Sensors vs. Hexatronic Group AB | JonDeTech Sensors vs. Instalco Intressenter AB | JonDeTech Sensors vs. NOTE AB | JonDeTech Sensors vs. Dometic Group AB |
| IZafe Group vs. Skanska AB | IZafe Group vs. AB SKF | IZafe Group vs. Tele2 AB | IZafe Group vs. AB Electrolux |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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