Correlation Between Jadestone Energy and Bankers Investment
Can any of the company-specific risk be diversified away by investing in both Jadestone Energy and Bankers Investment 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 Jadestone Energy and Bankers Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jadestone Energy and Bankers Investment Trust, you can compare the effects of market volatilities on Jadestone Energy and Bankers Investment 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 Jadestone Energy with a short position of Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jadestone Energy and Bankers Investment.
Diversification Opportunities for Jadestone Energy and Bankers Investment
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jadestone and Bankers is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jadestone Energy and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment Trust and Jadestone Energy 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 Jadestone Energy are associated (or correlated) with Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of Jadestone Energy i.e., Jadestone Energy and Bankers Investment go up and down completely randomly.
Pair Corralation between Jadestone Energy and Bankers Investment
Assuming the 90 days trading horizon Jadestone Energy is expected to under-perform the Bankers Investment. In addition to that, Jadestone Energy is 3.82 times more volatile than Bankers Investment Trust. It trades about -0.09 of its total potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.1 per unit of volatility. If you would invest 11,312 in Bankers Investment Trust on September 12, 2024 and sell it today you would earn a total of 268.00 from holding Bankers Investment Trust or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jadestone Energy vs. Bankers Investment Trust
Performance |
| Timeline |
| Jadestone Energy |
| Bankers Investment Trust |
Jadestone Energy and Bankers Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jadestone Energy and Bankers Investment
The main advantage of trading using opposite Jadestone Energy and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jadestone Energy position performs unexpectedly, Bankers Investment 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.| Jadestone Energy vs. Odyssean Investment Trust | Jadestone Energy vs. AMG Advanced Metallurgical | Jadestone Energy vs. Herald Investment Trust | Jadestone Energy vs. McEwen Mining |
| Bankers Investment vs. Liberty Media Corp | Bankers Investment vs. Panther Metals PLC | Bankers Investment vs. Centaur Media | Bankers Investment vs. GoldMining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |