Correlation Between JNS Holdings and Great Lakes
Can any of the company-specific risk be diversified away by investing in both JNS Holdings and Great Lakes 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 Great Lakes 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 Great Lakes Dredge, you can compare the effects of market volatilities on JNS Holdings and Great Lakes 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 Great Lakes. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNS Holdings and Great Lakes.
Diversification Opportunities for JNS Holdings and Great Lakes
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JNS and Great is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Great Lakes Dredge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Lakes Dredge 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 Great Lakes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Lakes Dredge has no effect on the direction of JNS Holdings i.e., JNS Holdings and Great Lakes go up and down completely randomly.
Pair Corralation between JNS Holdings and Great Lakes
Given the investment horizon of 90 days JNS Holdings is expected to generate 13.39 times less return on investment than Great Lakes. In addition to that, JNS Holdings is 2.03 times more volatile than Great Lakes Dredge. It trades about 0.0 of its total potential returns per unit of risk. Great Lakes Dredge is currently generating about 0.07 per unit of volatility. If you would invest 894.00 in Great Lakes Dredge on August 27, 2024 and sell it today you would earn a total of 339.00 from holding Great Lakes Dredge or generate 37.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JNS Holdings Corp vs. Great Lakes Dredge
Performance |
| Timeline |
| JNS Holdings Corp |
| Great Lakes Dredge |
JNS Holdings and Great Lakes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNS Holdings and Great Lakes
The main advantage of trading using opposite JNS Holdings and Great Lakes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNS Holdings position performs unexpectedly, Great Lakes 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 Great Lakes will offset losses from the drop in Great Lakes' long position.| JNS Holdings vs. Digital Locations | JNS Holdings vs. Orion Group Holdings | JNS Holdings vs. Vinci SA ADR | JNS Holdings vs. Agrify Corp |
| Great Lakes vs. Primoris Services | Great Lakes vs. Granite Construction Incorporated | Great Lakes vs. MYR Group | Great Lakes vs. Southland Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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