Correlation Between Matrix Service and JNS Holdings
Can any of the company-specific risk be diversified away by investing in both Matrix Service and JNS 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 Matrix Service and JNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matrix Service Co and JNS Holdings Corp, you can compare the effects of market volatilities on Matrix Service and JNS 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 Matrix Service with a short position of JNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matrix Service and JNS Holdings.
Diversification Opportunities for Matrix Service and JNS Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matrix and JNS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Matrix Service Co and JNS Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNS Holdings Corp and Matrix Service 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 Matrix Service Co are associated (or correlated) with JNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNS Holdings Corp has no effect on the direction of Matrix Service i.e., Matrix Service and JNS Holdings go up and down completely randomly.
Pair Corralation between Matrix Service and JNS Holdings
Given the investment horizon of 90 days Matrix Service Co is expected to generate 0.48 times more return on investment than JNS Holdings. However, Matrix Service Co is 2.09 times less risky than JNS Holdings. It trades about 0.06 of its potential returns per unit of risk. JNS Holdings Corp is currently generating about 0.02 per unit of risk. If you would invest 976.00 in Matrix Service Co on October 21, 2024 and sell it today you would earn a total of 512.00 from holding Matrix Service Co or generate 52.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matrix Service Co vs. JNS Holdings Corp
Performance |
| Timeline |
| Matrix Service |
| JNS Holdings Corp |
Matrix Service and JNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matrix Service and JNS Holdings
The main advantage of trading using opposite Matrix Service and JNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matrix Service position performs unexpectedly, JNS 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 JNS Holdings will offset losses from the drop in JNS Holdings' long position.| Matrix Service vs. EMCOR Group | Matrix Service vs. Comfort Systems USA | Matrix Service vs. Primoris Services | Matrix Service vs. Granite Construction Incorporated |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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