Correlation Between Photon Energy and JT ARCH
Can any of the company-specific risk be diversified away by investing in both Photon Energy and JT ARCH 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 Photon Energy and JT ARCH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Photon Energy NV and JT ARCH INVESTMENTS, you can compare the effects of market volatilities on Photon Energy and JT ARCH 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 Photon Energy with a short position of JT ARCH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photon Energy and JT ARCH.
Diversification Opportunities for Photon Energy and JT ARCH
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Photon and JTINA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Photon Energy NV and JT ARCH INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JT ARCH INVESTMENTS and Photon Energy 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 Photon Energy NV are associated (or correlated) with JT ARCH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JT ARCH INVESTMENTS has no effect on the direction of Photon Energy i.e., Photon Energy and JT ARCH go up and down completely randomly.
Pair Corralation between Photon Energy and JT ARCH
Assuming the 90 days trading horizon Photon Energy NV is expected to under-perform the JT ARCH. In addition to that, Photon Energy is 6.47 times more volatile than JT ARCH INVESTMENTS. It trades about -0.09 of its total potential returns per unit of risk. JT ARCH INVESTMENTS is currently generating about 0.24 per unit of volatility. If you would invest 159.00 in JT ARCH INVESTMENTS on October 23, 2024 and sell it today you would earn a total of 18.00 from holding JT ARCH INVESTMENTS or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.11% |
| Values | Daily Returns |
Photon Energy NV vs. JT ARCH INVESTMENTS
Performance |
| Timeline |
| Photon Energy NV |
| JT ARCH INVESTMENTS |
Photon Energy and JT ARCH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Photon Energy and JT ARCH
The main advantage of trading using opposite Photon Energy and JT ARCH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Photon Energy position performs unexpectedly, JT ARCH 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 JT ARCH will offset losses from the drop in JT ARCH's long position.| Photon Energy vs. JT ARCH INVESTMENTS | Photon Energy vs. UNIQA Insurance Group | Photon Energy vs. Raiffeisen Bank International | Photon Energy vs. Moneta Money Bank |
| JT ARCH vs. Vienna Insurance Group | JT ARCH vs. Komercni Banka AS | JT ARCH vs. Raiffeisen Bank International | JT ARCH vs. Erste Group Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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