Correlation Between Jutal Offshore and Loews Corp
Can any of the company-specific risk be diversified away by investing in both Jutal Offshore and Loews Corp 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 Loews Corp 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 Loews Corp, you can compare the effects of market volatilities on Jutal Offshore and Loews Corp 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 Loews Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jutal Offshore and Loews Corp.
Diversification Opportunities for Jutal Offshore and Loews Corp
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jutal and Loews is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jutal Offshore Oil and Loews Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loews Corp 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 Loews Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loews Corp has no effect on the direction of Jutal Offshore i.e., Jutal Offshore and Loews Corp go up and down completely randomly.
Pair Corralation between Jutal Offshore and Loews Corp
Assuming the 90 days horizon Jutal Offshore Oil is expected to generate 1.3 times more return on investment than Loews Corp. However, Jutal Offshore is 1.3 times more volatile than Loews Corp. It trades about 0.15 of its potential returns per unit of risk. Loews Corp is currently generating about 0.01 per unit of risk. If you would invest 1,910 in Jutal Offshore Oil on October 23, 2024 and sell it today you would earn a total of 171.00 from holding Jutal Offshore Oil or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.68% |
| Values | Daily Returns |
Jutal Offshore Oil vs. Loews Corp
Performance |
| Timeline |
| Jutal Offshore Oil |
| Loews Corp |
Jutal Offshore and Loews Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jutal Offshore and Loews Corp
The main advantage of trading using opposite Jutal Offshore and Loews Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jutal Offshore position performs unexpectedly, Loews Corp 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 Loews Corp will offset losses from the drop in Loews Corp's long position.| Jutal Offshore vs. Sea | Jutal Offshore vs. NETGEAR | Jutal Offshore vs. Stratasys | Jutal Offshore vs. United Utilities Group |
| Loews Corp vs. Horace Mann Educators | Loews Corp vs. Global Indemnity PLC | Loews Corp vs. Selective Insurance Group | Loews Corp vs. Kemper |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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