Correlation Between Cleanaway Waste and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste 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 Cleanaway Waste and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and JINS HOLDINGS INC, you can compare the effects of market volatilities on Cleanaway Waste 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 Cleanaway Waste with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and JINS HOLDINGS.
Diversification Opportunities for Cleanaway Waste and JINS HOLDINGS
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cleanaway and JINS is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management 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 Cleanaway Waste 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 Cleanaway Waste Management 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 Cleanaway Waste i.e., Cleanaway Waste and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between Cleanaway Waste and JINS HOLDINGS
Assuming the 90 days trading horizon Cleanaway Waste is expected to generate 3.95 times less return on investment than JINS HOLDINGS. But when comparing it to its historical volatility, Cleanaway Waste Management is 1.0 times less risky than JINS HOLDINGS. It trades about 0.06 of its potential returns per unit of risk. JINS HOLDINGS INC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,820 in JINS HOLDINGS INC on November 5, 2024 and sell it today you would earn a total of 480.00 from holding JINS HOLDINGS INC or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Waste Management vs. JINS HOLDINGS INC
Performance |
| Timeline |
| Cleanaway Waste Mana |
| JINS HOLDINGS INC |
Cleanaway Waste and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and JINS HOLDINGS
The main advantage of trading using opposite Cleanaway Waste and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste 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.| Cleanaway Waste vs. Firan Technology Group | Cleanaway Waste vs. HELIOS TECHS INC | Cleanaway Waste vs. Easy Software AG | Cleanaway Waste vs. Minerals Technologies |
| JINS HOLDINGS vs. DAIDO METAL TD | JINS HOLDINGS vs. AWILCO DRILLING PLC | JINS HOLDINGS vs. BORR DRILLING NEW | JINS HOLDINGS vs. China Communications Services |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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