Correlation Between FIRST SHIP and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both FIRST SHIP and JINS HOLDINGS 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 FIRST SHIP and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST SHIP LEASE and JINS HOLDINGS INC, you can compare the effects of market volatilities on FIRST SHIP and JINS HOLDINGS 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 FIRST SHIP with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SHIP and JINS HOLDINGS.
Diversification Opportunities for FIRST SHIP and JINS HOLDINGS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIRST and JINS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SHIP LEASE and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and FIRST SHIP 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 FIRST SHIP LEASE are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of FIRST SHIP i.e., FIRST SHIP and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between FIRST SHIP and JINS HOLDINGS
If you would invest 2.51 in FIRST SHIP LEASE on November 3, 2024 and sell it today you would lose (0.13) from holding FIRST SHIP LEASE or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
FIRST SHIP LEASE vs. JINS HOLDINGS INC
Performance |
| Timeline |
| FIRST SHIP LEASE |
| JINS HOLDINGS INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
FIRST SHIP and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SHIP and JINS HOLDINGS
The main advantage of trading using opposite FIRST SHIP and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SHIP position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| FIRST SHIP vs. BROADSTNET LEADL 00025 | FIRST SHIP vs. ADRIATIC METALS LS 013355 | FIRST SHIP vs. MAGNUM MINING EXP | FIRST SHIP vs. Yuexiu Transport Infrastructure |
| JINS HOLDINGS vs. Tyson Foods | JINS HOLDINGS vs. United Natural Foods | JINS HOLDINGS vs. Performance Food Group | JINS HOLDINGS vs. Harmony Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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