Correlation Between Jerash Holdings and CVW CleanTech
Can any of the company-specific risk be diversified away by investing in both Jerash Holdings and CVW CleanTech 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 Jerash Holdings and CVW CleanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jerash Holdings and CVW CleanTech, you can compare the effects of market volatilities on Jerash Holdings and CVW CleanTech 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 Jerash Holdings with a short position of CVW CleanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jerash Holdings and CVW CleanTech.
Diversification Opportunities for Jerash Holdings and CVW CleanTech
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jerash and CVW is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings and CVW CleanTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVW CleanTech and Jerash 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 Jerash Holdings are associated (or correlated) with CVW CleanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVW CleanTech has no effect on the direction of Jerash Holdings i.e., Jerash Holdings and CVW CleanTech go up and down completely randomly.
Pair Corralation between Jerash Holdings and CVW CleanTech
Given the investment horizon of 90 days Jerash Holdings is expected to generate 0.49 times more return on investment than CVW CleanTech. However, Jerash Holdings is 2.06 times less risky than CVW CleanTech. It trades about 0.1 of its potential returns per unit of risk. CVW CleanTech is currently generating about -0.04 per unit of risk. If you would invest 293.00 in Jerash Holdings on October 26, 2024 and sell it today you would earn a total of 59.00 from holding Jerash Holdings or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jerash Holdings vs. CVW CleanTech
Performance |
| Timeline |
| Jerash Holdings |
| CVW CleanTech |
Jerash Holdings and CVW CleanTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jerash Holdings and CVW CleanTech
The main advantage of trading using opposite Jerash Holdings and CVW CleanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jerash Holdings position performs unexpectedly, CVW CleanTech 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 CVW CleanTech will offset losses from the drop in CVW CleanTech's long position.| Jerash Holdings vs. Vince Holding Corp | Jerash Holdings vs. Oxford Industries | Jerash Holdings vs. Gildan Activewear | Jerash Holdings vs. Columbia Sportswear |
| CVW CleanTech vs. The Gap, | CVW CleanTech vs. Jerash Holdings | CVW CleanTech vs. IPG Photonics | CVW CleanTech vs. Everspin Technologies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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