Correlation Between Young Cos and Jost Werke
Can any of the company-specific risk be diversified away by investing in both Young Cos and Jost Werke 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 Young Cos and Jost Werke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Young Cos Brewery and Jost Werke AG, you can compare the effects of market volatilities on Young Cos and Jost Werke 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 Young Cos with a short position of Jost Werke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Young Cos and Jost Werke.
Diversification Opportunities for Young Cos and Jost Werke
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Young and Jost is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Young Cos Brewery and Jost Werke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jost Werke AG and Young Cos 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 Young Cos Brewery are associated (or correlated) with Jost Werke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jost Werke AG has no effect on the direction of Young Cos i.e., Young Cos and Jost Werke go up and down completely randomly.
Pair Corralation between Young Cos and Jost Werke
Assuming the 90 days trading horizon Young Cos Brewery is expected to under-perform the Jost Werke. In addition to that, Young Cos is 1.08 times more volatile than Jost Werke AG. It trades about -0.03 of its total potential returns per unit of risk. Jost Werke AG is currently generating about 0.01 per unit of volatility. If you would invest 4,136 in Jost Werke AG on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Jost Werke AG or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Young Cos Brewery vs. Jost Werke AG
Performance |
| Timeline |
| Young Cos Brewery |
| Jost Werke AG |
Young Cos and Jost Werke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Young Cos and Jost Werke
The main advantage of trading using opposite Young Cos and Jost Werke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Young Cos position performs unexpectedly, Jost Werke 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 Jost Werke will offset losses from the drop in Jost Werke's long position.| Young Cos vs. Odyssean Investment Trust | Young Cos vs. Host Hotels Resorts | Young Cos vs. United Utilities Group | Young Cos vs. Herald Investment Trust |
| Jost Werke vs. Catalyst Media Group | Jost Werke vs. CATLIN GROUP | Jost Werke vs. RTW Venture Fund | Jost Werke vs. Secure Property Development |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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