Correlation Between Near and JasmyCoin
Can any of the company-specific risk be diversified away by investing in both Near and JasmyCoin 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 Near and JasmyCoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Near and JasmyCoin, you can compare the effects of market volatilities on Near and JasmyCoin 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 Near with a short position of JasmyCoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Near and JasmyCoin.
Diversification Opportunities for Near and JasmyCoin
Very poor diversification
The 3 months correlation between Near and JasmyCoin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Near and JasmyCoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JasmyCoin and Near 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 Near are associated (or correlated) with JasmyCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JasmyCoin has no effect on the direction of Near i.e., Near and JasmyCoin go up and down completely randomly.
Pair Corralation between Near and JasmyCoin
Assuming the 90 days trading horizon Near is expected to generate 0.64 times more return on investment than JasmyCoin. However, Near is 1.55 times less risky than JasmyCoin. It trades about 0.5 of its potential returns per unit of risk. JasmyCoin is currently generating about 0.25 per unit of risk. If you would invest 405.00 in Near on August 31, 2024 and sell it today you would earn a total of 281.00 from holding Near or generate 69.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Near vs. JasmyCoin
Performance |
| Timeline |
| Near |
| JasmyCoin |
Near and JasmyCoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Near and JasmyCoin
The main advantage of trading using opposite Near and JasmyCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Near position performs unexpectedly, JasmyCoin 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 JasmyCoin will offset losses from the drop in JasmyCoin's long position.The idea behind Near and JasmyCoin 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |