Correlation Between STMicroelectronics and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both STMicroelectronics and JINS 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 STMicroelectronics and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STMicroelectronics NV and JINS HOLDINGS INC, you can compare the effects of market volatilities on STMicroelectronics and JINS 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 STMicroelectronics with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMicroelectronics and JINS HOLDINGS.
Diversification Opportunities for STMicroelectronics and JINS HOLDINGS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between STMicroelectronics and JINS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and STMicroelectronics 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 STMicroelectronics NV are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of STMicroelectronics i.e., STMicroelectronics and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between STMicroelectronics and JINS HOLDINGS
Assuming the 90 days horizon STMicroelectronics NV is expected to under-perform the JINS HOLDINGS. In addition to that, STMicroelectronics is 1.08 times more volatile than JINS HOLDINGS INC. It trades about -0.06 of its total potential returns per unit of risk. JINS HOLDINGS INC is currently generating about 0.22 per unit of volatility. If you would invest 3,820 in JINS HOLDINGS INC on October 16, 2024 and sell it today you would earn a total of 380.00 from holding JINS HOLDINGS INC or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STMicroelectronics NV vs. JINS HOLDINGS INC
Performance |
| Timeline |
| STMicroelectronics |
| JINS HOLDINGS INC |
STMicroelectronics and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STMicroelectronics and JINS HOLDINGS
The main advantage of trading using opposite STMicroelectronics and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMicroelectronics position performs unexpectedly, JINS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| STMicroelectronics vs. CREO MEDICAL GRP | STMicroelectronics vs. Shenandoah Telecommunications | STMicroelectronics vs. ENVVENO MEDICAL DL 00001 | STMicroelectronics vs. CompuGroup Medical SE |
| JINS HOLDINGS vs. STORE ELECTRONIC | JINS HOLDINGS vs. STMicroelectronics NV | JINS HOLDINGS vs. ALTAIR RES INC | JINS HOLDINGS vs. Delta Electronics Public |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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