Correlation Between JDS UNIPHASE and TOTAL GABON
Can any of the company-specific risk be diversified away by investing in both JDS UNIPHASE and TOTAL GABON 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 TOTAL GABON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JDS UNIPHASE and TOTAL GABON, you can compare the effects of market volatilities on JDS UNIPHASE and TOTAL GABON 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 TOTAL GABON. Check out your portfolio center. Please also check ongoing floating volatility patterns of JDS UNIPHASE and TOTAL GABON.
Diversification Opportunities for JDS UNIPHASE and TOTAL GABON
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JDS and TOTAL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JDS UNIPHASE and TOTAL GABON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL GABON 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 TOTAL GABON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL GABON has no effect on the direction of JDS UNIPHASE i.e., JDS UNIPHASE and TOTAL GABON go up and down completely randomly.
Pair Corralation between JDS UNIPHASE and TOTAL GABON
Assuming the 90 days trading horizon JDS UNIPHASE is expected to generate 1.27 times less return on investment than TOTAL GABON. In addition to that, JDS UNIPHASE is 1.34 times more volatile than TOTAL GABON. It trades about 0.02 of its total potential returns per unit of risk. TOTAL GABON is currently generating about 0.03 per unit of volatility. If you would invest 16,002 in TOTAL GABON on September 12, 2024 and sell it today you would earn a total of 2,698 from holding TOTAL GABON or generate 16.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JDS UNIPHASE vs. TOTAL GABON
Performance |
| Timeline |
| JDS UNIPHASE |
| TOTAL GABON |
JDS UNIPHASE and TOTAL GABON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JDS UNIPHASE and TOTAL GABON
The main advantage of trading using opposite JDS UNIPHASE and TOTAL GABON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JDS UNIPHASE position performs unexpectedly, TOTAL GABON 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 TOTAL GABON will offset losses from the drop in TOTAL GABON's long position.| JDS UNIPHASE vs. Zijin Mining Group | JDS UNIPHASE vs. Ross Stores | JDS UNIPHASE vs. AEON STORES | JDS UNIPHASE vs. KENNAMETAL INC |
| TOTAL GABON vs. TYSON FOODS A | TOTAL GABON vs. National Beverage Corp | TOTAL GABON vs. Food Life Companies | TOTAL GABON vs. SENECA FOODS A |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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