Correlation Between JGC Corp and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both JGC Corp and Concrete Pumping 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 JGC Corp and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JGC Corp and Concrete Pumping Holdings, you can compare the effects of market volatilities on JGC Corp and Concrete Pumping 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 JGC Corp with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGC Corp and Concrete Pumping.
Diversification Opportunities for JGC Corp and Concrete Pumping
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JGC and Concrete is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding JGC Corp and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and JGC Corp 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 JGC Corp are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of JGC Corp i.e., JGC Corp and Concrete Pumping go up and down completely randomly.
Pair Corralation between JGC Corp and Concrete Pumping
If you would invest 2.90 in Concrete Pumping Holdings on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Concrete Pumping Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
JGC Corp vs. Concrete Pumping Holdings
Performance |
| Timeline |
| JGC Corp |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JGC Corp and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGC Corp and Concrete Pumping
The main advantage of trading using opposite JGC Corp and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGC Corp position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.The idea behind JGC Corp and Concrete Pumping Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Concrete Pumping vs. Peoples Educational Holdings | Concrete Pumping vs. Ihuman Inc | Concrete Pumping vs. East Africa Metals | Concrete Pumping vs. Lion One Metals |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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