Correlation Between JB Chemicals and ATN International

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

By analyzing existing cross correlation between JB Chemicals Pharmaceuticals and ATN International Limited, you can compare the effects of market volatilities on JB Chemicals and ATN International 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 JB Chemicals with a short position of ATN International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Chemicals and ATN International.

Diversification Opportunities for JB Chemicals and ATN International

0.0

Correlation Coefficient

JB Chemicals  ATN International

Pay attention - limited upside

The 3 months correlation between JBCHEPHARM and ATN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JB Chemicals Pharmaceuticals and ATN International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and JB Chemicals 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 JB Chemicals Pharmaceuticals are associated (or correlated) with ATN International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATN International has no effect on the direction of JB Chemicals i.e., JB Chemicals and ATN International go up and down completely randomly.

Pair Corralation between JB Chemicals and ATN International

If you would invest  178,000  in JB Chemicals Pharmaceuticals on October 9, 2024 and sell it today you would earn a total of  4,720  from holding JB Chemicals Pharmaceuticals or generate 2.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JB Chemicals Pharmaceuticals  vs.  ATN International Limited

JB Chemicals Pharmac

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JB Chemicals Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, JB Chemicals is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

ATN International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATN International Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, ATN International is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JB Chemicals and ATN International

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

The idea behind JB Chemicals Pharmaceuticals and ATN International Limited 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.