Correlation Between Jerash Holdings and SIA Engineering
Can any of the company-specific risk be diversified away by investing in both Jerash Holdings and SIA Engineering 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 SIA Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jerash Holdings and SIA Engineering, you can compare the effects of market volatilities on Jerash Holdings and SIA Engineering 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 SIA Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jerash Holdings and SIA Engineering.
Diversification Opportunities for Jerash Holdings and SIA Engineering
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jerash and SIA is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings and SIA Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIA Engineering 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 SIA Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIA Engineering has no effect on the direction of Jerash Holdings i.e., Jerash Holdings and SIA Engineering go up and down completely randomly.
Pair Corralation between Jerash Holdings and SIA Engineering
Given the investment horizon of 90 days Jerash Holdings is expected to generate 8.84 times more return on investment than SIA Engineering. However, Jerash Holdings is 8.84 times more volatile than SIA Engineering. It trades about 0.06 of its potential returns per unit of risk. SIA Engineering is currently generating about 0.08 per unit of risk. If you would invest 287.00 in Jerash Holdings on November 3, 2024 and sell it today you would earn a total of 61.50 from holding Jerash Holdings or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Jerash Holdings vs. SIA Engineering
Performance |
| Timeline |
| Jerash Holdings |
| SIA Engineering |
Jerash Holdings and SIA Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jerash Holdings and SIA Engineering
The main advantage of trading using opposite Jerash Holdings and SIA Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jerash Holdings position performs unexpectedly, SIA Engineering 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 SIA Engineering will offset losses from the drop in SIA Engineering's long position.| Jerash Holdings vs. Vince Holding Corp | Jerash Holdings vs. Oxford Industries | Jerash Holdings vs. Gildan Activewear | Jerash Holdings vs. Columbia Sportswear |
| SIA Engineering vs. Grupo Aeroportuario del | SIA Engineering vs. Grupo Aeroportuario del | SIA Engineering vs. Grupo Aeroportuario del | SIA Engineering vs. AerSale 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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