Correlation Between JetAI and I Mab
Can any of the company-specific risk be diversified away by investing in both JetAI and I Mab 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 JetAI and I Mab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JetAI Inc and I Mab, you can compare the effects of market volatilities on JetAI and I Mab 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 JetAI with a short position of I Mab. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetAI and I Mab.
Diversification Opportunities for JetAI and I Mab
Very poor diversification
The 3 months correlation between JetAI and IMAB is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JetAI Inc and I Mab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Mab and JetAI 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 JetAI Inc are associated (or correlated) with I Mab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Mab has no effect on the direction of JetAI i.e., JetAI and I Mab go up and down completely randomly.
Pair Corralation between JetAI and I Mab
Given the investment horizon of 90 days JetAI Inc is expected to generate 3.2 times more return on investment than I Mab. However, JetAI is 3.2 times more volatile than I Mab. It trades about 0.09 of its potential returns per unit of risk. I Mab is currently generating about 0.16 per unit of risk. If you would invest 356.00 in JetAI Inc on October 21, 2024 and sell it today you would earn a total of 30.00 from holding JetAI Inc or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JetAI Inc vs. I Mab
Performance |
| Timeline |
| JetAI Inc |
| I Mab |
JetAI and I Mab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetAI and I Mab
The main advantage of trading using opposite JetAI and I Mab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetAI position performs unexpectedly, I Mab 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 I Mab will offset losses from the drop in I Mab's long position.The idea behind JetAI Inc and I Mab pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |