Correlation Between Jack In and Codere Online

Can any of the company-specific risk be diversified away by investing in both Jack In and Codere Online 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 Jack In and Codere Online into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jack In The and Codere Online Corp, you can compare the effects of market volatilities on Jack In and Codere Online 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 Jack In with a short position of Codere Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack In and Codere Online.

Diversification Opportunities for Jack In and Codere Online

-0.5

Correlation Coefficient

Jack In  Codere Online

Very good diversification

The 3 months correlation between Jack and Codere is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jack In The and Codere Online Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codere Online Corp and Jack In 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 Jack In The are associated (or correlated) with Codere Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codere Online Corp has no effect on the direction of Jack In i.e., Jack In and Codere Online go up and down completely randomly.

Pair Corralation between Jack In and Codere Online

Given the investment horizon of 90 days Jack In The is expected to generate 1.25 times more return on investment than Codere Online. However, Jack In is 1.25 times more volatile than Codere Online Corp. It trades about 0.04 of its potential returns per unit of risk. Codere Online Corp is currently generating about 0.04 per unit of risk. If you would invest  4,691  in Jack In The on September 3, 2024 and sell it today you would earn a total of  194.00  from holding Jack In The or generate 4.14% return on investment over 90 days.

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

Jack In The  vs.  Codere Online Corp

Jack In

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jack In The are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Jack In is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Codere Online Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Codere Online Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Codere Online is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Jack In and Codere Online

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

The idea behind Jack In The and Codere Online Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.