Correlation Between Loews Corp and Jutal Offshore
Can any of the company-specific risk be diversified away by investing in both Loews Corp and Jutal Offshore 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 Loews Corp and Jutal Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loews Corp and Jutal Offshore Oil, you can compare the effects of market volatilities on Loews Corp and Jutal Offshore 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 Loews Corp with a short position of Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loews Corp and Jutal Offshore.
Diversification Opportunities for Loews Corp and Jutal Offshore
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Loews and Jutal is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Loews Corp and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil and Loews Corp 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 Loews Corp are associated (or correlated) with Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Loews Corp i.e., Loews Corp and Jutal Offshore go up and down completely randomly.
Pair Corralation between Loews Corp and Jutal Offshore
Taking into account the 90-day investment horizon Loews Corp is expected to generate 2.68 times less return on investment than Jutal Offshore. But when comparing it to its historical volatility, Loews Corp is 3.93 times less risky than Jutal Offshore. It trades about 0.07 of its potential returns per unit of risk. Jutal Offshore Oil is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,558 in Jutal Offshore Oil on November 3, 2024 and sell it today you would earn a total of 523.00 from holding Jutal Offshore Oil or generate 33.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Loews Corp vs. Jutal Offshore Oil
Performance |
| Timeline |
| Loews Corp |
| Jutal Offshore Oil |
Loews Corp and Jutal Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loews Corp and Jutal Offshore
The main advantage of trading using opposite Loews Corp and Jutal Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loews Corp position performs unexpectedly, Jutal Offshore 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 Jutal Offshore will offset losses from the drop in Jutal Offshore's long position.| Loews Corp vs. Horace Mann Educators | Loews Corp vs. Global Indemnity PLC | Loews Corp vs. Selective Insurance Group | Loews Corp vs. Kemper |
| Jutal Offshore vs. Philip Morris International | Jutal Offshore vs. Ispire Technology Common | Jutal Offshore vs. CVR Partners LP | Jutal Offshore vs. RLX Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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