Correlation Between GRIT Real and JSC National

Can any of the company-specific risk be diversified away by investing in both GRIT Real and JSC National 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 GRIT Real and JSC National into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GRIT Real Estate and JSC National Atomic, you can compare the effects of market volatilities on GRIT Real and JSC National 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 GRIT Real with a short position of JSC National. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIT Real and JSC National.

Diversification Opportunities for GRIT Real and JSC National

-0.54

Correlation Coefficient

GRIT Real  JSC National

Excellent diversification

The 3 months correlation between GRIT and JSC is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding GRIT Real Estate and JSC National Atomic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC National Atomic and GRIT Real 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 GRIT Real Estate are associated (or correlated) with JSC National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC National Atomic has no effect on the direction of GRIT Real i.e., GRIT Real and JSC National go up and down completely randomly.

Pair Corralation between GRIT Real and JSC National

Assuming the 90 days trading horizon GRIT Real Estate is expected to generate 0.89 times more return on investment than JSC National. However, GRIT Real Estate is 1.13 times less risky than JSC National. It trades about 0.1 of its potential returns per unit of risk. JSC National Atomic is currently generating about -0.25 per unit of risk. If you would invest  1,025  in GRIT Real Estate on September 23, 2024 and sell it today you would earn a total of  25.00  from holding GRIT Real Estate or generate 2.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

GRIT Real Estate  vs.  JSC National Atomic

GRIT Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GRIT Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

JSC National Atomic

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JSC National Atomic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, JSC National may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with GRIT Real and JSC National

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

The idea behind GRIT Real Estate and JSC National Atomic 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.