Correlation Between Spuntech and Jacob Finance
Can any of the company-specific risk be diversified away by investing in both Spuntech and Jacob Finance 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 Spuntech and Jacob Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spuntech and Jacob Finance And, you can compare the effects of market volatilities on Spuntech and Jacob Finance 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 Spuntech with a short position of Jacob Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spuntech and Jacob Finance.
Diversification Opportunities for Spuntech and Jacob Finance
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spuntech and Jacob is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Spuntech and Jacob Finance And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Finance And and Spuntech 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 Spuntech are associated (or correlated) with Jacob Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Finance And has no effect on the direction of Spuntech i.e., Spuntech and Jacob Finance go up and down completely randomly.
Pair Corralation between Spuntech and Jacob Finance
Assuming the 90 days trading horizon Spuntech is expected to generate 0.94 times more return on investment than Jacob Finance. However, Spuntech is 1.06 times less risky than Jacob Finance. It trades about 0.37 of its potential returns per unit of risk. Jacob Finance And is currently generating about 0.08 per unit of risk. If you would invest 43,720 in Spuntech on August 25, 2024 and sell it today you would earn a total of 6,780 from holding Spuntech or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spuntech vs. Jacob Finance And
Performance |
| Timeline |
| Spuntech |
| Jacob Finance And |
Spuntech and Jacob Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spuntech and Jacob Finance
The main advantage of trading using opposite Spuntech and Jacob Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spuntech position performs unexpectedly, Jacob Finance 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 Jacob Finance will offset losses from the drop in Jacob Finance's long position.| Spuntech vs. Aryt Industries | Spuntech vs. Kerur Holdings | Spuntech vs. Scope Metals Group | Spuntech vs. Delek Automotive Systems |
| Jacob Finance vs. Spuntech | Jacob Finance vs. Payment Financial Technologies | Jacob Finance vs. Wesure Global Tech | Jacob Finance vs. Blender Financial Technologies |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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