Correlation Between JINS HOLDINGS and JOHNSON SVC

Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and JOHNSON SVC 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 JINS HOLDINGS and JOHNSON SVC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JINS HOLDINGS INC and JOHNSON SVC LS 10, you can compare the effects of market volatilities on JINS HOLDINGS and JOHNSON SVC 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 JINS HOLDINGS with a short position of JOHNSON SVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and JOHNSON SVC.

Diversification Opportunities for JINS HOLDINGS and JOHNSON SVC

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Correlation Coefficient

JINS HOLDINGS  JOHNSON SVC

Pay attention - limited upside

The 3 months correlation between JINS and JOHNSON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and JOHNSON SVC LS 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHNSON SVC LS and JINS HOLDINGS 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 JINS HOLDINGS INC are associated (or correlated) with JOHNSON SVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHNSON SVC LS has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and JOHNSON SVC go up and down completely randomly.

Pair Corralation between JINS HOLDINGS and JOHNSON SVC

If you would invest  0.00  in JINS HOLDINGS INC on October 4, 2024 and sell it today you would earn a total of  0.00  from holding JINS HOLDINGS INC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

JINS HOLDINGS INC  vs.  JOHNSON SVC LS 10

JINS HOLDINGS INC

Risk-Adjusted Performance

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Good

Over the last 90 days JINS HOLDINGS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, JINS HOLDINGS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

JOHNSON SVC LS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JOHNSON SVC LS 10 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with JINS HOLDINGS and JOHNSON SVC

The main advantage of trading using opposite JINS HOLDINGS and JOHNSON SVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, JOHNSON SVC 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 JOHNSON SVC will offset losses from the drop in JOHNSON SVC's long position.

The idea behind JINS HOLDINGS INC and JOHNSON SVC LS 10 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.