Correlation Between Jutal Offshore and Dana
Can any of the company-specific risk be diversified away by investing in both Jutal Offshore and Dana 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 Jutal Offshore and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jutal Offshore Oil and Dana Inc, you can compare the effects of market volatilities on Jutal Offshore and Dana 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 Jutal Offshore with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jutal Offshore and Dana.
Diversification Opportunities for Jutal Offshore and Dana
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jutal and Dana is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jutal Offshore Oil and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and Jutal Offshore 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 Jutal Offshore Oil are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Jutal Offshore i.e., Jutal Offshore and Dana go up and down completely randomly.
Pair Corralation between Jutal Offshore and Dana
Assuming the 90 days horizon Jutal Offshore Oil is expected to generate 1.23 times more return on investment than Dana. However, Jutal Offshore is 1.23 times more volatile than Dana Inc. It trades about 0.0 of its potential returns per unit of risk. Dana Inc is currently generating about -0.02 per unit of risk. If you would invest 2,332 in Jutal Offshore Oil on August 30, 2024 and sell it today you would lose (422.00) from holding Jutal Offshore Oil or give up 18.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jutal Offshore Oil vs. Dana Inc
Performance |
| Timeline |
| Jutal Offshore Oil |
| Dana Inc |
Jutal Offshore and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jutal Offshore and Dana
The main advantage of trading using opposite Jutal Offshore and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jutal Offshore position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Jutal Offshore vs. Expro Group Holdings | Jutal Offshore vs. ChampionX | Jutal Offshore vs. Ranger Energy Services | Jutal Offshore vs. Cactus Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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