Correlation Between Elevate Uranium and JB Hi-Fi

Can any of the company-specific risk be diversified away by investing in both Elevate Uranium and JB Hi-Fi 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 Elevate Uranium and JB Hi-Fi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Elevate Uranium and JB Hi Fi, you can compare the effects of market volatilities on Elevate Uranium and JB Hi-Fi 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 Elevate Uranium with a short position of JB Hi-Fi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevate Uranium and JB Hi-Fi.

Diversification Opportunities for Elevate Uranium and JB Hi-Fi

0.0

Correlation Coefficient

Elevate Uranium  JB Hi-Fi

Pay attention - limited upside

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

Pair Corralation between Elevate Uranium and JB Hi-Fi

If you would invest (100.00) in JB Hi Fi on December 29, 2024 and sell it today you would earn a total of  100.00  from holding JB Hi Fi or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Elevate Uranium  vs.  JB Hi Fi

Elevate Uranium

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elevate Uranium has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

JB Hi Fi

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Elevate Uranium and JB Hi-Fi

The main advantage of trading using opposite Elevate Uranium and JB Hi-Fi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevate Uranium position performs unexpectedly, JB Hi-Fi 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 JB Hi-Fi will offset losses from the drop in JB Hi-Fi's long position.

The idea behind Elevate Uranium and JB Hi Fi 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.