Correlation Between JBT Old and IDEX
Can any of the company-specific risk be diversified away by investing in both JBT Old and IDEX 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 JBT Old and IDEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBT Old and IDEX Corporation, you can compare the effects of market volatilities on JBT Old and IDEX 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 JBT Old with a short position of IDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBT Old and IDEX.
Diversification Opportunities for JBT Old and IDEX
Pay attention - limited upside
The 3 months correlation between JBT and IDEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JBT Old and IDEX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDEX and JBT Old 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 JBT Old are associated (or correlated) with IDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDEX has no effect on the direction of JBT Old i.e., JBT Old and IDEX go up and down completely randomly.
Pair Corralation between JBT Old and IDEX
If you would invest (100.00) in JBT Old on December 1, 2024 and sell it today you would earn a total of 100.00 from holding JBT Old or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
JBT Old vs. IDEX Corp.
Performance |
Timeline |
JBT Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IDEX |
JBT Old and IDEX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JBT Old and IDEX
The main advantage of trading using opposite JBT Old and IDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBT Old position performs unexpectedly, IDEX 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 IDEX will offset losses from the drop in IDEX's long position.JBT Old vs. Flowserve | JBT Old vs. Franklin Electric Co | JBT Old vs. ITT Inc | JBT Old vs. IDEX Corporation |
Check out your portfolio center.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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |