Correlation Between Globus Medical, and Jbfo Fof

Can any of the company-specific risk be diversified away by investing in both Globus Medical, and Jbfo Fof 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 Globus Medical, and Jbfo Fof into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Globus Medical, and Jbfo Fof Fundo, you can compare the effects of market volatilities on Globus Medical, and Jbfo Fof 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 Globus Medical, with a short position of Jbfo Fof. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Medical, and Jbfo Fof.

Diversification Opportunities for Globus Medical, and Jbfo Fof

0.52

Correlation Coefficient

Globus Medical,  Jbfo Fof

Very weak diversification

The 3 months correlation between Globus and Jbfo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Globus Medical, and Jbfo Fof Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jbfo Fof Fundo and Globus Medical, 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 Globus Medical, are associated (or correlated) with Jbfo Fof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jbfo Fof Fundo has no effect on the direction of Globus Medical, i.e., Globus Medical, and Jbfo Fof go up and down completely randomly.

Pair Corralation between Globus Medical, and Jbfo Fof

Assuming the 90 days trading horizon Globus Medical, is expected to generate 30.91 times less return on investment than Jbfo Fof. But when comparing it to its historical volatility, Globus Medical, is 2.17 times less risky than Jbfo Fof. It trades about 0.02 of its potential returns per unit of risk. Jbfo Fof Fundo is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  7,028  in Jbfo Fof Fundo on October 6, 2024 and sell it today you would earn a total of  1,173  from holding Jbfo Fof Fundo or generate 16.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Globus Medical,  vs.  Jbfo Fof Fundo

Globus Medical,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Globus Medical, are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Globus Medical, sustained solid returns over the last few months and may actually be approaching a breakup point.

Jbfo Fof Fundo

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jbfo Fof Fundo are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak technical and fundamental indicators, Jbfo Fof sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Globus Medical, and Jbfo Fof

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

The idea behind Globus Medical, and Jbfo Fof Fundo 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.