Correlation Between JDS UNIPHASE and Retail Estates
Can any of the company-specific risk be diversified away by investing in both JDS UNIPHASE and Retail Estates 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 JDS UNIPHASE and Retail Estates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JDS UNIPHASE and Retail Estates NV, you can compare the effects of market volatilities on JDS UNIPHASE and Retail Estates 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 JDS UNIPHASE with a short position of Retail Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of JDS UNIPHASE and Retail Estates.
Diversification Opportunities for JDS UNIPHASE and Retail Estates
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JDS and Retail is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding JDS UNIPHASE and Retail Estates NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Estates NV and JDS UNIPHASE 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 JDS UNIPHASE are associated (or correlated) with Retail Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Estates NV has no effect on the direction of JDS UNIPHASE i.e., JDS UNIPHASE and Retail Estates go up and down completely randomly.
Pair Corralation between JDS UNIPHASE and Retail Estates
Assuming the 90 days trading horizon JDS UNIPHASE is expected to generate 1.94 times more return on investment than Retail Estates. However, JDS UNIPHASE is 1.94 times more volatile than Retail Estates NV. It trades about 0.02 of its potential returns per unit of risk. Retail Estates NV is currently generating about 0.03 per unit of risk. If you would invest 921.00 in JDS UNIPHASE on September 12, 2024 and sell it today you would earn a total of 64.00 from holding JDS UNIPHASE or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JDS UNIPHASE vs. Retail Estates NV
Performance |
| Timeline |
| JDS UNIPHASE |
| Retail Estates NV |
JDS UNIPHASE and Retail Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JDS UNIPHASE and Retail Estates
The main advantage of trading using opposite JDS UNIPHASE and Retail Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JDS UNIPHASE position performs unexpectedly, Retail Estates 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 Retail Estates will offset losses from the drop in Retail Estates' long position.| JDS UNIPHASE vs. Zijin Mining Group | JDS UNIPHASE vs. Ross Stores | JDS UNIPHASE vs. AEON STORES | JDS UNIPHASE vs. KENNAMETAL INC |
| Retail Estates vs. Vicinity Centres | Retail Estates vs. Superior Plus Corp | Retail Estates vs. NMI Holdings | Retail Estates vs. SIVERS SEMICONDUCTORS AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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