Correlation Between JPX Global and Anaergia
Can any of the company-specific risk be diversified away by investing in both JPX Global and Anaergia 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 JPX Global and Anaergia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPX Global and Anaergia, you can compare the effects of market volatilities on JPX Global and Anaergia 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 JPX Global with a short position of Anaergia. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPX Global and Anaergia.
Diversification Opportunities for JPX Global and Anaergia
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPX and Anaergia is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding JPX Global and Anaergia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anaergia and JPX 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 JPX Global are associated (or correlated) with Anaergia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anaergia has no effect on the direction of JPX Global i.e., JPX Global and Anaergia go up and down completely randomly.
Pair Corralation between JPX Global and Anaergia
Given the investment horizon of 90 days JPX Global is expected to generate 1.5 times less return on investment than Anaergia. But when comparing it to its historical volatility, JPX Global is 1.49 times less risky than Anaergia. It trades about 0.1 of its potential returns per unit of risk. Anaergia is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Anaergia on November 3, 2024 and sell it today you would earn a total of 52.00 from holding Anaergia or generate 247.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPX Global vs. Anaergia
Performance |
| Timeline |
| JPX Global |
| Anaergia |
JPX Global and Anaergia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPX Global and Anaergia
The main advantage of trading using opposite JPX Global and Anaergia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPX Global position performs unexpectedly, Anaergia 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 Anaergia will offset losses from the drop in Anaergia's long position.| JPX Global vs. Houston Natural Resources | JPX Global vs. Ecosciences | JPX Global vs. Ecoloclean Industrs | JPX Global vs. Garb Oil Pwr |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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