Correlation Between Jaguar Global and Growth For
Can any of the company-specific risk be diversified away by investing in both Jaguar Global and Growth For 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 Jaguar Global and Growth For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaguar Global Growth and The Growth For, you can compare the effects of market volatilities on Jaguar Global and Growth For 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 Jaguar Global with a short position of Growth For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Global and Growth For.
Diversification Opportunities for Jaguar Global and Growth For
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jaguar and Growth is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Global Growth and The Growth For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth For and Jaguar Global 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 Jaguar Global Growth are associated (or correlated) with Growth For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth For has no effect on the direction of Jaguar Global i.e., Jaguar Global and Growth For go up and down completely randomly.
Pair Corralation between Jaguar Global and Growth For
Assuming the 90 days horizon Jaguar Global is expected to generate 1.54 times less return on investment than Growth For. In addition to that, Jaguar Global is 1.01 times more volatile than The Growth For. It trades about 0.11 of its total potential returns per unit of risk. The Growth For is currently generating about 0.17 per unit of volatility. If you would invest 4.80 in The Growth For on August 30, 2024 and sell it today you would earn a total of 14.20 from holding The Growth For or generate 295.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaguar Global Growth vs. The Growth For
Performance |
| Timeline |
| Jaguar Global Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Growth For |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jaguar Global and Growth For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaguar Global and Growth For
The main advantage of trading using opposite Jaguar Global and Growth For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Global position performs unexpectedly, Growth For 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 Growth For will offset losses from the drop in Growth For's long position.The idea behind Jaguar Global Growth and The Growth For 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.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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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