Correlation Between JT ARCH and Photon Energy
Can any of the company-specific risk be diversified away by investing in both JT ARCH and Photon Energy 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 Photon Energy 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 Photon Energy NV, you can compare the effects of market volatilities on JT ARCH and Photon Energy 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 Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JT ARCH and Photon Energy.
Diversification Opportunities for JT ARCH and Photon Energy
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JTINA and Photon is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding JT ARCH INVESTMENTS and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV 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 Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of JT ARCH i.e., JT ARCH and Photon Energy go up and down completely randomly.
Pair Corralation between JT ARCH and Photon Energy
Assuming the 90 days trading horizon JT ARCH INVESTMENTS is expected to generate 0.06 times more return on investment than Photon Energy. However, JT ARCH INVESTMENTS is 18.04 times less risky than Photon Energy. It trades about 0.32 of its potential returns per unit of risk. Photon Energy NV is currently generating about -0.26 per unit of risk. If you would invest 168.00 in JT ARCH INVESTMENTS on September 4, 2024 and sell it today you would earn a total of 2.00 from holding JT ARCH INVESTMENTS or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JT ARCH INVESTMENTS vs. Photon Energy NV
Performance |
| Timeline |
| JT ARCH INVESTMENTS |
| Photon Energy NV |
JT ARCH and Photon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JT ARCH and Photon Energy
The main advantage of trading using opposite JT ARCH and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JT ARCH position performs unexpectedly, Photon Energy 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 Photon Energy will offset losses from the drop in Photon Energy'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 |
| Photon Energy vs. Cez AS | Photon Energy vs. MT 1997 AS | Photon Energy vs. Kofola CeskoSlovensko as | Photon Energy vs. HARDWARIO 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |