Correlation Between JNS Holdings and Cardno
Can any of the company-specific risk be diversified away by investing in both JNS Holdings and Cardno 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 Cardno 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 Cardno Limited, you can compare the effects of market volatilities on JNS Holdings and Cardno 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 Cardno. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNS Holdings and Cardno.
Diversification Opportunities for JNS Holdings and Cardno
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JNS and Cardno is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Cardno Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardno Limited 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 Cardno. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardno Limited has no effect on the direction of JNS Holdings i.e., JNS Holdings and Cardno go up and down completely randomly.
Pair Corralation between JNS Holdings and Cardno
Given the investment horizon of 90 days JNS Holdings Corp is expected to generate 1.75 times more return on investment than Cardno. However, JNS Holdings is 1.75 times more volatile than Cardno Limited. It trades about 0.1 of its potential returns per unit of risk. Cardno Limited is currently generating about -0.33 per unit of risk. If you would invest 0.24 in JNS Holdings Corp on August 30, 2024 and sell it today you would earn a total of 0.06 from holding JNS Holdings Corp or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
JNS Holdings Corp vs. Cardno Limited
Performance |
| Timeline |
| JNS Holdings Corp |
| Cardno Limited |
JNS Holdings and Cardno Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNS Holdings and Cardno
The main advantage of trading using opposite JNS Holdings and Cardno positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNS Holdings position performs unexpectedly, Cardno 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 Cardno will offset losses from the drop in Cardno's long position.| JNS Holdings vs. Digital Locations | JNS Holdings vs. Orion Group Holdings | JNS Holdings vs. Vinci SA ADR | JNS Holdings vs. Agrify Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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