Correlation Between Berkshire Grey and JE Cleantech

Can any of the company-specific risk be diversified away by investing in both Berkshire Grey and JE Cleantech 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 Berkshire Grey and JE Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Berkshire Grey and JE Cleantech Holdings, you can compare the effects of market volatilities on Berkshire Grey and JE Cleantech 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 Berkshire Grey with a short position of JE Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Grey and JE Cleantech.

Diversification Opportunities for Berkshire Grey and JE Cleantech

0.0

Correlation Coefficient

Berkshire Grey  JE Cleantech

Pay attention - limited upside

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

Pair Corralation between Berkshire Grey and JE Cleantech

If you would invest  136.00  in JE Cleantech Holdings on October 15, 2024 and sell it today you would earn a total of  1.00  from holding JE Cleantech Holdings or generate 0.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Berkshire Grey  vs.  JE Cleantech Holdings

Berkshire Grey

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Berkshire Grey has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Berkshire Grey is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

JE Cleantech Holdings

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JE Cleantech Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, JE Cleantech exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Berkshire Grey and JE Cleantech

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

The idea behind Berkshire Grey and JE Cleantech Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.