Correlation Between JEMTEC and AirIQ
Can any of the company-specific risk be diversified away by investing in both JEMTEC and AirIQ 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 JEMTEC and AirIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JEMTEC Inc and AirIQ Inc, you can compare the effects of market volatilities on JEMTEC and AirIQ 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 JEMTEC with a short position of AirIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of JEMTEC and AirIQ.
Diversification Opportunities for JEMTEC and AirIQ
Excellent diversification
The 3 months correlation between JEMTEC and AirIQ is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding JEMTEC Inc and AirIQ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirIQ Inc and JEMTEC 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 JEMTEC Inc are associated (or correlated) with AirIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirIQ Inc has no effect on the direction of JEMTEC i.e., JEMTEC and AirIQ go up and down completely randomly.
Pair Corralation between JEMTEC and AirIQ
Assuming the 90 days horizon JEMTEC Inc is expected to generate 0.64 times more return on investment than AirIQ. However, JEMTEC Inc is 1.57 times less risky than AirIQ. It trades about 0.05 of its potential returns per unit of risk. AirIQ Inc is currently generating about -0.32 per unit of risk. If you would invest 91.00 in JEMTEC Inc on October 24, 2024 and sell it today you would earn a total of 1.00 from holding JEMTEC Inc or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JEMTEC Inc vs. AirIQ Inc
Performance |
| Timeline |
| JEMTEC Inc |
| AirIQ Inc |
JEMTEC and AirIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JEMTEC and AirIQ
The main advantage of trading using opposite JEMTEC and AirIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JEMTEC position performs unexpectedly, AirIQ 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 AirIQ will offset losses from the drop in AirIQ's long position.| JEMTEC vs. E L Financial Corp | JEMTEC vs. Brookfield Office Properties | JEMTEC vs. Hemisphere Energy | JEMTEC vs. US Financial 15 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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