Correlation Between ACS Actividades and JNS Holdings
Can any of the company-specific risk be diversified away by investing in both ACS Actividades and JNS Holdings 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 ACS Actividades and JNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACS Actividades de and JNS Holdings Corp, you can compare the effects of market volatilities on ACS Actividades and JNS Holdings 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 ACS Actividades with a short position of JNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and JNS Holdings.
Diversification Opportunities for ACS Actividades and JNS Holdings
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACS and JNS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades de and JNS Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNS Holdings Corp and ACS Actividades 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 ACS Actividades de are associated (or correlated) with JNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNS Holdings Corp has no effect on the direction of ACS Actividades i.e., ACS Actividades and JNS Holdings go up and down completely randomly.
Pair Corralation between ACS Actividades and JNS Holdings
Assuming the 90 days horizon ACS Actividades is expected to generate 1.13 times less return on investment than JNS Holdings. But when comparing it to its historical volatility, ACS Actividades de is 2.6 times less risky than JNS Holdings. It trades about 0.16 of its potential returns per unit of risk. JNS Holdings Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.20 in JNS Holdings Corp on December 17, 2024 and sell it today you would earn a total of 0.01 from holding JNS Holdings Corp or generate 5.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ACS Actividades de vs. JNS Holdings Corp
Performance |
Timeline |
ACS Actividades de |
JNS Holdings Corp |
ACS Actividades and JNS Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACS Actividades and JNS Holdings
The main advantage of trading using opposite ACS Actividades and JNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACS Actividades position performs unexpectedly, JNS Holdings 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 JNS Holdings will offset losses from the drop in JNS Holdings' long position.ACS Actividades vs. Acciona SA | ACS Actividades vs. JGC Corp | ACS Actividades vs. Kajima Corp ADR | ACS Actividades vs. ACS Actividades De |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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