Correlation Between JSL SA and Airbnb
Can any of the company-specific risk be diversified away by investing in both JSL SA and Airbnb 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 JSL SA and Airbnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSL SA and Airbnb Inc, you can compare the effects of market volatilities on JSL SA and Airbnb 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 JSL SA with a short position of Airbnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSL SA and Airbnb.
Diversification Opportunities for JSL SA and Airbnb
Pay attention - limited upside
The 3 months correlation between JSL and Airbnb is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding JSL SA and Airbnb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbnb Inc and JSL SA 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 JSL SA are associated (or correlated) with Airbnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbnb Inc has no effect on the direction of JSL SA i.e., JSL SA and Airbnb go up and down completely randomly.
Pair Corralation between JSL SA and Airbnb
Assuming the 90 days trading horizon JSL SA is expected to under-perform the Airbnb. In addition to that, JSL SA is 1.07 times more volatile than Airbnb Inc. It trades about -0.04 of its total potential returns per unit of risk. Airbnb Inc is currently generating about 0.06 per unit of volatility. If you would invest 3,960 in Airbnb Inc on August 30, 2024 and sell it today you would earn a total of 129.00 from holding Airbnb Inc or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
JSL SA vs. Airbnb Inc
Performance |
| Timeline |
| JSL SA |
| Airbnb Inc |
JSL SA and Airbnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSL SA and Airbnb
The main advantage of trading using opposite JSL SA and Airbnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSL SA position performs unexpectedly, Airbnb 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 Airbnb will offset losses from the drop in Airbnb's long position.| JSL SA vs. Cognizant Technology Solutions | JSL SA vs. CM Hospitalar SA | JSL SA vs. CVS Health | JSL SA vs. Automatic Data Processing |
| Airbnb vs. Unity Software | Airbnb vs. Palantir Technologies | Airbnb vs. BIONTECH SE DRN | Airbnb vs. Unifique Telecomunicaes SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |