Correlation Between Vow ASA and Jardine Matheson
Can any of the company-specific risk be diversified away by investing in both Vow ASA and Jardine Matheson 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 Vow ASA and Jardine Matheson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vow ASA and Jardine Matheson Holdings, you can compare the effects of market volatilities on Vow ASA and Jardine Matheson 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 Vow ASA with a short position of Jardine Matheson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow ASA and Jardine Matheson.
Diversification Opportunities for Vow ASA and Jardine Matheson
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vow and Jardine is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and Jardine Matheson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jardine Matheson Holdings and Vow ASA 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 Vow ASA are associated (or correlated) with Jardine Matheson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jardine Matheson Holdings has no effect on the direction of Vow ASA i.e., Vow ASA and Jardine Matheson go up and down completely randomly.
Pair Corralation between Vow ASA and Jardine Matheson
Assuming the 90 days horizon Vow ASA is expected to under-perform the Jardine Matheson. In addition to that, Vow ASA is 5.32 times more volatile than Jardine Matheson Holdings. It trades about -0.21 of its total potential returns per unit of risk. Jardine Matheson Holdings is currently generating about 0.47 per unit of volatility. If you would invest 3,832 in Jardine Matheson Holdings on September 1, 2024 and sell it today you would earn a total of 505.00 from holding Jardine Matheson Holdings or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vow ASA vs. Jardine Matheson Holdings
Performance |
| Timeline |
| Vow ASA |
| Jardine Matheson Holdings |
Vow ASA and Jardine Matheson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow ASA and Jardine Matheson
The main advantage of trading using opposite Vow ASA and Jardine Matheson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow ASA position performs unexpectedly, Jardine Matheson 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 Jardine Matheson will offset losses from the drop in Jardine Matheson's long position.| Vow ASA vs. Eestech | Vow ASA vs. Bion Environmental Technologies | Vow ASA vs. TOMI Environmental Solutions |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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