Correlation Between Invest Capital and Jubilee Life

Can any of the company-specific risk be diversified away by investing in both Invest Capital and Jubilee Life 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 Invest Capital and Jubilee Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Invest Capital Investment and Jubilee Life Insurance, you can compare the effects of market volatilities on Invest Capital and Jubilee Life 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 Invest Capital with a short position of Jubilee Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invest Capital and Jubilee Life.

Diversification Opportunities for Invest Capital and Jubilee Life

0.66

Correlation Coefficient

Invest Capital  Jubilee Life

Poor diversification

The 3 months correlation between Invest and Jubilee is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Invest Capital Investment and Jubilee Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilee Life Insurance and Invest Capital 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 Invest Capital Investment are associated (or correlated) with Jubilee Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilee Life Insurance has no effect on the direction of Invest Capital i.e., Invest Capital and Jubilee Life go up and down completely randomly.

Pair Corralation between Invest Capital and Jubilee Life

Assuming the 90 days trading horizon Invest Capital Investment is expected to under-perform the Jubilee Life. In addition to that, Invest Capital is 1.23 times more volatile than Jubilee Life Insurance. It trades about -0.06 of its total potential returns per unit of risk. Jubilee Life Insurance is currently generating about -0.07 per unit of volatility. If you would invest  16,639  in Jubilee Life Insurance on December 30, 2024 and sell it today you would lose (1,788) from holding Jubilee Life Insurance or give up 10.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Invest Capital Investment  vs.  Jubilee Life Insurance

Invest Capital Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Invest Capital Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Jubilee Life Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jubilee Life Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Invest Capital and Jubilee Life

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

The idea behind Invest Capital Investment and Jubilee Life Insurance 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.