Correlation Between Jungfraubahn Holding and U Blox
Can any of the company-specific risk be diversified away by investing in both Jungfraubahn Holding and U Blox 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 Jungfraubahn Holding and U Blox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jungfraubahn Holding AG and U Blox Holding, you can compare the effects of market volatilities on Jungfraubahn Holding and U Blox 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 Jungfraubahn Holding with a short position of U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jungfraubahn Holding and U Blox.
Diversification Opportunities for Jungfraubahn Holding and U Blox
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jungfraubahn and UBXN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jungfraubahn Holding AG and U Blox Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Blox Holding and Jungfraubahn Holding 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 Jungfraubahn Holding AG are associated (or correlated) with U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Blox Holding has no effect on the direction of Jungfraubahn Holding i.e., Jungfraubahn Holding and U Blox go up and down completely randomly.
Pair Corralation between Jungfraubahn Holding and U Blox
Assuming the 90 days trading horizon Jungfraubahn Holding AG is expected to generate 0.62 times more return on investment than U Blox. However, Jungfraubahn Holding AG is 1.6 times less risky than U Blox. It trades about 0.04 of its potential returns per unit of risk. U Blox Holding is currently generating about -0.05 per unit of risk. If you would invest 14,377 in Jungfraubahn Holding AG on August 31, 2024 and sell it today you would earn a total of 2,463 from holding Jungfraubahn Holding AG or generate 17.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Jungfraubahn Holding AG vs. U Blox Holding
Performance |
| Timeline |
| Jungfraubahn Holding |
| U Blox Holding |
Jungfraubahn Holding and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jungfraubahn Holding and U Blox
The main advantage of trading using opposite Jungfraubahn Holding and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jungfraubahn Holding position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox's long position.| Jungfraubahn Holding vs. Emmi AG | Jungfraubahn Holding vs. Flughafen Zurich | Jungfraubahn Holding vs. Bergbahnen Engelberg Truebsee | Jungfraubahn Holding vs. EMS CHEMIE HOLDING AG |
| U Blox vs. Jungfraubahn Holding AG | U Blox vs. Amsterdam Commodities NV | U Blox vs. Flow Traders BV | U Blox vs. ForFarmers NV |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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