Correlation Between Shapeways Holdings, and JE Cleantech
Can any of the company-specific risk be diversified away by investing in both Shapeways Holdings, and JE Cleantech 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 Shapeways Holdings, and JE Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shapeways Holdings, Common and JE Cleantech Holdings, you can compare the effects of market volatilities on Shapeways Holdings, and JE Cleantech 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 Shapeways Holdings, with a short position of JE Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapeways Holdings, and JE Cleantech.
Diversification Opportunities for Shapeways Holdings, and JE Cleantech
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shapeways and JCSE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shapeways Holdings, Common and JE Cleantech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JE Cleantech Holdings and Shapeways Holdings, 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 Shapeways Holdings, Common are associated (or correlated) with JE Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JE Cleantech Holdings has no effect on the direction of Shapeways Holdings, i.e., Shapeways Holdings, and JE Cleantech go up and down completely randomly.
Pair Corralation between Shapeways Holdings, and JE Cleantech
Given the investment horizon of 90 days Shapeways Holdings, Common is expected to generate 9.52 times more return on investment than JE Cleantech. However, Shapeways Holdings, is 9.52 times more volatile than JE Cleantech Holdings. It trades about 0.08 of its potential returns per unit of risk. JE Cleantech Holdings is currently generating about 0.07 per unit of risk. If you would invest 185.00 in Shapeways Holdings, Common on August 28, 2024 and sell it today you would lose (184.98) from holding Shapeways Holdings, Common or give up 99.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shapeways Holdings, Common vs. JE Cleantech Holdings
Performance |
| Timeline |
| Shapeways Holdings, |
| JE Cleantech Holdings |
Shapeways Holdings, and JE Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shapeways Holdings, and JE Cleantech
The main advantage of trading using opposite Shapeways Holdings, and JE Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapeways Holdings, position performs unexpectedly, JE Cleantech 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 JE Cleantech will offset losses from the drop in JE Cleantech's long position.| Shapeways Holdings, vs. Gates Industrial | Shapeways Holdings, vs. Crane Company | Shapeways Holdings, vs. Babcock Wilcox Enterprises | Shapeways Holdings, vs. JE Cleantech Holdings |
| JE Cleantech vs. Aquagold International | JE Cleantech vs. Morningstar Unconstrained Allocation | JE Cleantech vs. High Yield Municipal Fund | JE Cleantech vs. Thrivent High Yield |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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