Correlation Between JT ARCH and SAB Finance
Can any of the company-specific risk be diversified away by investing in both JT ARCH and SAB Finance 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 SAB Finance 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 SAB Finance as, you can compare the effects of market volatilities on JT ARCH and SAB Finance 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 SAB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of JT ARCH and SAB Finance.
Diversification Opportunities for JT ARCH and SAB Finance
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JTINA and SAB is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding JT ARCH INVESTMENTS and SAB Finance as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Finance 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 SAB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Finance as has no effect on the direction of JT ARCH i.e., JT ARCH and SAB Finance go up and down completely randomly.
Pair Corralation between JT ARCH and SAB Finance
Assuming the 90 days trading horizon JT ARCH INVESTMENTS is expected to generate 0.2 times more return on investment than SAB Finance. However, JT ARCH INVESTMENTS is 4.9 times less risky than SAB Finance. It trades about 0.22 of its potential returns per unit of risk. SAB Finance as is currently generating about -0.07 per unit of risk. If you would invest 168.00 in JT ARCH INVESTMENTS on August 28, 2024 and sell it today you would earn a total of 1.00 from holding JT ARCH INVESTMENTS or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JT ARCH INVESTMENTS vs. SAB Finance as
Performance |
| Timeline |
| JT ARCH INVESTMENTS |
| SAB Finance as |
JT ARCH and SAB Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JT ARCH and SAB Finance
The main advantage of trading using opposite JT ARCH and SAB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JT ARCH position performs unexpectedly, SAB Finance 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 SAB Finance will offset losses from the drop in SAB Finance'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 |
| SAB Finance vs. Erste Group Bank | SAB Finance vs. Moneta Money Bank | SAB Finance vs. Vienna Insurance Group | SAB Finance vs. JT ARCH INVESTMENTS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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