Correlation Between New Momentum and Saint Jean
Can any of the company-specific risk be diversified away by investing in both New Momentum and Saint Jean 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 New Momentum and Saint Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Momentum and Saint Jean Carbon, you can compare the effects of market volatilities on New Momentum and Saint Jean 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 New Momentum with a short position of Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Momentum and Saint Jean.
Diversification Opportunities for New Momentum and Saint Jean
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Saint is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding New Momentum and Saint Jean Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Carbon and New Momentum 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 New Momentum are associated (or correlated) with Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Carbon has no effect on the direction of New Momentum i.e., New Momentum and Saint Jean go up and down completely randomly.
Pair Corralation between New Momentum and Saint Jean
Given the investment horizon of 90 days New Momentum is expected to generate 1.46 times more return on investment than Saint Jean. However, New Momentum is 1.46 times more volatile than Saint Jean Carbon. It trades about 0.04 of its potential returns per unit of risk. Saint Jean Carbon is currently generating about 0.04 per unit of risk. If you would invest 0.71 in New Momentum on November 2, 2024 and sell it today you would lose (0.66) from holding New Momentum or give up 92.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Momentum vs. Saint Jean Carbon
Performance |
| Timeline |
| New Momentum |
| Saint Jean Carbon |
New Momentum and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Momentum and Saint Jean
The main advantage of trading using opposite New Momentum and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Momentum position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.| New Momentum vs. Booking Holdings | New Momentum vs. TripAdvisor | New Momentum vs. Airbnb Inc | New Momentum vs. Royal Caribbean Cruises |
| Saint Jean vs. ZincX Resources Corp | Saint Jean vs. Mundoro Capital | Saint Jean vs. Strategic Resources | Saint Jean vs. Norra Metals Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |