Correlation Between Corus Entertainment and Jutal Offshore

Can any of the company-specific risk be diversified away by investing in both Corus Entertainment and Jutal Offshore 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 Corus Entertainment and Jutal Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Corus Entertainment and Jutal Offshore Oil, you can compare the effects of market volatilities on Corus Entertainment and Jutal Offshore 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 Corus Entertainment with a short position of Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corus Entertainment and Jutal Offshore.

Diversification Opportunities for Corus Entertainment and Jutal Offshore

-0.12

Correlation Coefficient

Corus Entertainment  Jutal Offshore

Good diversification

The 3 months correlation between Corus and Jutal is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Corus Entertainment and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil and Corus Entertainment 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 Corus Entertainment are associated (or correlated) with Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Corus Entertainment i.e., Corus Entertainment and Jutal Offshore go up and down completely randomly.

Pair Corralation between Corus Entertainment and Jutal Offshore

Assuming the 90 days horizon Corus Entertainment is expected to under-perform the Jutal Offshore. In addition to that, Corus Entertainment is 1.25 times more volatile than Jutal Offshore Oil. It trades about -0.02 of its total potential returns per unit of risk. Jutal Offshore Oil is currently generating about 0.0 per unit of volatility. If you would invest  2,332  in Jutal Offshore Oil on September 12, 2024 and sell it today you would lose (427.00) from holding Jutal Offshore Oil or give up 18.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	29.35%
Values	Daily Returns

Corus Entertainment  vs.  Jutal Offshore Oil

Corus Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jutal Offshore Oil

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jutal Offshore Oil are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Jutal Offshore showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corus Entertainment and Jutal Offshore

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

The idea behind Corus Entertainment and Jutal Offshore Oil 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.