Correlation Between Dirtt Environmen and JNS Holdings

Can any of the company-specific risk be diversified away by investing in both Dirtt Environmen 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 Dirtt Environmen and JNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Dirtt Environmen and JNS Holdings

0.0

Correlation Coefficient

Dirtt Environmen  JNS Holdings

Pay attention - limited upside

The 3 months correlation between Dirtt and JNS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dirtt Environmen 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 Dirtt Environmen 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 Dirtt Environmen 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 Dirtt Environmen i.e., Dirtt Environmen and JNS Holdings go up and down completely randomly.

Pair Corralation between Dirtt Environmen and JNS Holdings

Given the investment horizon of 90 days Dirtt Environmen is expected to under-perform the JNS Holdings. In addition to that, Dirtt Environmen is 1.14 times more volatile than JNS Holdings Corp. It trades about -0.06 of its total potential returns per unit of risk. JNS Holdings Corp is currently generating about 0.01 per unit of volatility. If you would invest  0.46  in JNS Holdings Corp on October 25, 2024 and sell it today you would lose (0.20) from holding JNS Holdings Corp or give up 43.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	23.94%
Values	Daily Returns

Dirtt Environmen  vs.  JNS Holdings Corp

Dirtt Environmen

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Dirtt Environmen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Dirtt Environmen is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

JNS Holdings Corp

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days JNS Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, JNS Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Dirtt Environmen and JNS Holdings

The main advantage of trading using opposite Dirtt Environmen and JNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dirtt Environmen 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.

The idea behind Dirtt Environmen and JNS Holdings Corp 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.