Correlation Between JNS Holdings and Bantek
Can any of the company-specific risk be diversified away by investing in both JNS Holdings and Bantek 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 JNS Holdings and Bantek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JNS Holdings Corp and Bantek Inc, you can compare the effects of market volatilities on JNS Holdings and Bantek 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 JNS Holdings with a short position of Bantek. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNS Holdings and Bantek.
Diversification Opportunities for JNS Holdings and Bantek
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between JNS and Bantek is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Bantek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bantek Inc and JNS Holdings 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 JNS Holdings Corp are associated (or correlated) with Bantek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bantek Inc has no effect on the direction of JNS Holdings i.e., JNS Holdings and Bantek go up and down completely randomly.
Pair Corralation between JNS Holdings and Bantek
Given the investment horizon of 90 days JNS Holdings is expected to generate 196.05 times less return on investment than Bantek. But when comparing it to its historical volatility, JNS Holdings Corp is 4.6 times less risky than Bantek. It trades about 0.0 of its potential returns per unit of risk. Bantek Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Bantek Inc on August 27, 2024 and sell it today you would lose (19.87) from holding Bantek Inc or give up 99.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JNS Holdings Corp vs. Bantek Inc
Performance |
| Timeline |
| JNS Holdings Corp |
| Bantek Inc |
JNS Holdings and Bantek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNS Holdings and Bantek
The main advantage of trading using opposite JNS Holdings and Bantek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNS Holdings position performs unexpectedly, Bantek 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 Bantek will offset losses from the drop in Bantek's long position.| JNS Holdings vs. Aecom Technology | JNS Holdings vs. Matrix Service Co | JNS Holdings vs. MYR Group | JNS Holdings vs. Fluor |
| Bantek vs. Rolls Royce Holdings plc | Bantek vs. Byrna Technologies | Bantek vs. Austal Limited | Bantek vs. Astronics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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