Correlation Between Elevate Uranium and JB Hi

Can any of the company-specific risk be diversified away by investing in both Elevate Uranium and JB Hi 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 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 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevate Uranium and JB Hi.

Diversification Opportunities for Elevate Uranium and JB Hi

-0.12

Correlation Coefficient

Elevate Uranium  JB Hi

Good diversification

The 3 months correlation between Elevate and JBH is -0.12. 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. 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 go up and down completely randomly.

Pair Corralation between Elevate Uranium and JB Hi

Assuming the 90 days trading horizon Elevate Uranium is expected to under-perform the JB Hi. In addition to that, Elevate Uranium is 2.69 times more volatile than JB Hi Fi. It trades about -0.29 of its total potential returns per unit of risk. JB Hi Fi is currently generating about -0.21 per unit of volatility. If you would invest  9,971  in JB Hi Fi on December 2, 2024 and sell it today you would lose (766.00) from holding JB Hi Fi or give up 7.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

JB Hi Fi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hi Fi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical indicators, JB Hi is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Elevate Uranium and JB Hi

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

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.