Correlation Between Light Wonder and Jade Gas
Can any of the company-specific risk be diversified away by investing in both Light Wonder and Jade Gas 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 Light Wonder and Jade Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Light Wonder and Jade Gas Holdings, you can compare the effects of market volatilities on Light Wonder and Jade Gas 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 Light Wonder with a short position of Jade Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Light Wonder and Jade Gas.
Diversification Opportunities for Light Wonder and Jade Gas
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Light and Jade is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Light Wonder and Jade Gas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jade Gas Holdings and Light Wonder 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 Light Wonder are associated (or correlated) with Jade Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jade Gas Holdings has no effect on the direction of Light Wonder i.e., Light Wonder and Jade Gas go up and down completely randomly.
Pair Corralation between Light Wonder and Jade Gas
Assuming the 90 days trading horizon Light Wonder is expected to generate 0.46 times more return on investment than Jade Gas. However, Light Wonder is 2.15 times less risky than Jade Gas. It trades about 0.02 of its potential returns per unit of risk. Jade Gas Holdings is currently generating about -0.01 per unit of risk. If you would invest 14,590 in Light Wonder on September 1, 2024 and sell it today you would earn a total of 351.00 from holding Light Wonder or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Light Wonder vs. Jade Gas Holdings
Performance |
| Timeline |
| Light Wonder |
| Jade Gas Holdings |
Light Wonder and Jade Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Light Wonder and Jade Gas
The main advantage of trading using opposite Light Wonder and Jade Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Light Wonder position performs unexpectedly, Jade Gas 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 Jade Gas will offset losses from the drop in Jade Gas' long position.| Light Wonder vs. Lottery | Light Wonder vs. Pointsbet Holdings | Light Wonder vs. Bluebet Holdings | Light Wonder vs. Betmakers Technology Group |
| Jade Gas vs. BKI Investment | Jade Gas vs. Microequities Asset Management | Jade Gas vs. A1 Investments Resources | Jade Gas vs. REGAL ASIAN INVESTMENTS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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