Correlation Between J B and Nafpaktos Textile

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both J B and Nafpaktos Textile 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 J B and Nafpaktos Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J B Ladenis and Nafpaktos Textile Industry, you can compare the effects of market volatilities on J B and Nafpaktos Textile 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 J B with a short position of Nafpaktos Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of J B and Nafpaktos Textile.

Diversification Opportunities for J B and Nafpaktos Textile

MINNafpaktosDiversified AwayMINNafpaktosDiversified Away100%
-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between MIN and Nafpaktos is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding J B Ladenis and Nafpaktos Textile Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafpaktos Textile and J B 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 J B Ladenis are associated (or correlated) with Nafpaktos Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafpaktos Textile has no effect on the direction of J B i.e., J B and Nafpaktos Textile go up and down completely randomly.

Pair Corralation between J B and Nafpaktos Textile

Assuming the 90 days trading horizon J B Ladenis is expected to generate 1.8 times more return on investment than Nafpaktos Textile. However, J B is 1.8 times more volatile than Nafpaktos Textile Industry. It trades about 0.01 of its potential returns per unit of risk. Nafpaktos Textile Industry is currently generating about -0.02 per unit of risk. If you would invest  57.00  in J B Ladenis on September 19, 2024 and sell it today you would lose (8.00) from holding J B Ladenis or give up 14.04% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

J B Ladenis  vs.  Nafpaktos Textile Industry

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-15-10-50510
JavaScript chart by amCharts 3.21.15MIN NAYP
       Timeline  
J B Ladenis 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days J B Ladenis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.480.50.520.540.560.580.60.62
Nafpaktos Textile 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Nafpaktos Textile Industry has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nafpaktos Textile is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.70.750.80.850.9

J B and Nafpaktos Textile Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.37-4.77-3.17-1.57-0.02621.553.124.696.26 0.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15MIN NAYP
       Returns  

Pair Trading with J B and Nafpaktos Textile

The main advantage of trading using opposite J B and Nafpaktos Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J B position performs unexpectedly, Nafpaktos Textile 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 Nafpaktos Textile will offset losses from the drop in Nafpaktos Textile's long position.
The idea behind J B Ladenis and Nafpaktos Textile Industry pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Fundamental Analysis
View fundamental data based on most recent published financial statements
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.