Correlation Between Jantsa Jant and BINHO

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

By analyzing existing cross correlation between Jantsa Jant Sanayi and BINHO, you can compare the effects of market volatilities on Jantsa Jant and BINHO 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 Jantsa Jant with a short position of BINHO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jantsa Jant and BINHO.

Diversification Opportunities for Jantsa Jant and BINHO

0.11

Correlation Coefficient

Jantsa Jant  BINHO

Average diversification

The 3 months correlation between Jantsa and BINHO is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jantsa Jant Sanayi and BINHO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BINHO and Jantsa Jant 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 Jantsa Jant Sanayi are associated (or correlated) with BINHO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BINHO has no effect on the direction of Jantsa Jant i.e., Jantsa Jant and BINHO go up and down completely randomly.

Pair Corralation between Jantsa Jant and BINHO

Assuming the 90 days trading horizon Jantsa Jant Sanayi is expected to under-perform the BINHO. But the stock apears to be less risky and, when comparing its historical volatility, Jantsa Jant Sanayi is 1.52 times less risky than BINHO. The stock trades about -0.05 of its potential returns per unit of risk. The BINHO is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  32,250  in BINHO on October 4, 2024 and sell it today you would lose (550.00) from holding BINHO or give up 1.71% of portfolio value over 90 days.

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

Jantsa Jant Sanayi  vs.  BINHO

Jantsa Jant Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jantsa Jant Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Jantsa Jant is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

BINHO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BINHO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, BINHO is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Jantsa Jant and BINHO

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

The idea behind Jantsa Jant Sanayi and BINHO 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.