Correlation Between Junee Limited and Bowman Consulting
Can any of the company-specific risk be diversified away by investing in both Junee Limited and Bowman Consulting 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 Junee Limited and Bowman Consulting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Junee Limited Ordinary and Bowman Consulting Group, you can compare the effects of market volatilities on Junee Limited and Bowman Consulting 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 Junee Limited with a short position of Bowman Consulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Junee Limited and Bowman Consulting.
Diversification Opportunities for Junee Limited and Bowman Consulting
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Junee and Bowman is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Junee Limited Ordinary and Bowman Consulting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowman Consulting and Junee Limited 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 Junee Limited Ordinary are associated (or correlated) with Bowman Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowman Consulting has no effect on the direction of Junee Limited i.e., Junee Limited and Bowman Consulting go up and down completely randomly.
Pair Corralation between Junee Limited and Bowman Consulting
Given the investment horizon of 90 days Junee Limited Ordinary is expected to under-perform the Bowman Consulting. In addition to that, Junee Limited is 3.05 times more volatile than Bowman Consulting Group. It trades about -0.06 of its total potential returns per unit of risk. Bowman Consulting Group is currently generating about 0.29 per unit of volatility. If you would invest 2,542 in Bowman Consulting Group on September 12, 2024 and sell it today you would earn a total of 300.00 from holding Bowman Consulting Group or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Junee Limited Ordinary vs. Bowman Consulting Group
Performance |
| Timeline |
| Junee Limited Ordinary |
| Bowman Consulting |
Junee Limited and Bowman Consulting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Junee Limited and Bowman Consulting
The main advantage of trading using opposite Junee Limited and Bowman Consulting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Junee Limited position performs unexpectedly, Bowman Consulting 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 Bowman Consulting will offset losses from the drop in Bowman Consulting's long position.| Junee Limited vs. Jacobs Solutions | Junee Limited vs. Dycom Industries | Junee Limited vs. Innovate Corp | Junee Limited vs. Energy Services |
| Bowman Consulting vs. EMCOR Group | Bowman Consulting vs. Comfort Systems USA | Bowman Consulting vs. Primoris Services | Bowman Consulting vs. Granite Construction Incorporated |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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