Correlation Between Xebec Adsorption and John Bean
Can any of the company-specific risk be diversified away by investing in both Xebec Adsorption and John Bean 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 Xebec Adsorption and John Bean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xebec Adsorption and John Bean Technologies, you can compare the effects of market volatilities on Xebec Adsorption and John Bean 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 Xebec Adsorption with a short position of John Bean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xebec Adsorption and John Bean.
Diversification Opportunities for Xebec Adsorption and John Bean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xebec and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xebec Adsorption and John Bean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Bean Technologies and Xebec Adsorption 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 Xebec Adsorption are associated (or correlated) with John Bean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Bean Technologies has no effect on the direction of Xebec Adsorption i.e., Xebec Adsorption and John Bean go up and down completely randomly.
Pair Corralation between Xebec Adsorption and John Bean
Assuming the 90 days horizon Xebec Adsorption is expected to generate 27.74 times more return on investment than John Bean. However, Xebec Adsorption is 27.74 times more volatile than John Bean Technologies. It trades about 0.06 of its potential returns per unit of risk. John Bean Technologies is currently generating about 0.04 per unit of risk. If you would invest 0.00 in Xebec Adsorption on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Xebec Adsorption or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Xebec Adsorption vs. John Bean Technologies
Performance |
| Timeline |
| Xebec Adsorption |
| John Bean Technologies |
Xebec Adsorption and John Bean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xebec Adsorption and John Bean
The main advantage of trading using opposite Xebec Adsorption and John Bean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xebec Adsorption position performs unexpectedly, John Bean 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 John Bean will offset losses from the drop in John Bean's long position.| Xebec Adsorption vs. Standex International | Xebec Adsorption vs. Intevac | Xebec Adsorption vs. Thermon Group Holdings | Xebec Adsorption vs. Enpro Industries |
| John Bean vs. Flowserve | John Bean vs. Franklin Electric Co | John Bean vs. ITT Inc | John Bean vs. IDEX Corporation |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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