Correlation Between JT ARCH and MT 1997
Can any of the company-specific risk be diversified away by investing in both JT ARCH and MT 1997 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 JT ARCH and MT 1997 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JT ARCH INVESTMENTS and MT 1997 AS, you can compare the effects of market volatilities on JT ARCH and MT 1997 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 JT ARCH with a short position of MT 1997. Check out your portfolio center. Please also check ongoing floating volatility patterns of JT ARCH and MT 1997.
Diversification Opportunities for JT ARCH and MT 1997
Excellent diversification
The 3 months correlation between JTINA and KLIKY is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding JT ARCH INVESTMENTS and MT 1997 AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT 1997 AS and JT ARCH 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 JT ARCH INVESTMENTS are associated (or correlated) with MT 1997. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT 1997 AS has no effect on the direction of JT ARCH i.e., JT ARCH and MT 1997 go up and down completely randomly.
Pair Corralation between JT ARCH and MT 1997
Assuming the 90 days trading horizon JT ARCH INVESTMENTS is expected to generate 0.22 times more return on investment than MT 1997. However, JT ARCH INVESTMENTS is 4.6 times less risky than MT 1997. It trades about 0.2 of its potential returns per unit of risk. MT 1997 AS is currently generating about -0.04 per unit of risk. If you would invest 159.00 in JT ARCH INVESTMENTS on August 31, 2024 and sell it today you would earn a total of 11.00 from holding JT ARCH INVESTMENTS or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 33.78% |
| Values | Daily Returns |
JT ARCH INVESTMENTS vs. MT 1997 AS
Performance |
| Timeline |
| JT ARCH INVESTMENTS |
| MT 1997 AS |
JT ARCH and MT 1997 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JT ARCH and MT 1997
The main advantage of trading using opposite JT ARCH and MT 1997 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JT ARCH position performs unexpectedly, MT 1997 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 MT 1997 will offset losses from the drop in MT 1997's long position.| JT ARCH vs. Cez AS | JT ARCH vs. Kofola CeskoSlovensko as | JT ARCH vs. Primoco UAV SE | JT ARCH vs. MT 1997 AS |
| MT 1997 vs. Erste Group Bank | MT 1997 vs. Vienna Insurance Group | MT 1997 vs. UNIQA Insurance Group | MT 1997 vs. Komercni Banka AS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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