Correlation Between JCurve Solutions and IShares Global

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

By analyzing existing cross correlation between JCurve Solutions and iShares Global Healthcare, you can compare the effects of market volatilities on JCurve Solutions and IShares Global 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 JCurve Solutions with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCurve Solutions and IShares Global.

Diversification Opportunities for JCurve Solutions and IShares Global

-0.36

Correlation Coefficient

JCurve Solutions  IShares Global

Very good diversification

The 3 months correlation between JCurve and IShares is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding JCurve Solutions and iShares Global Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Healthcare and JCurve Solutions 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 JCurve Solutions are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Healthcare has no effect on the direction of JCurve Solutions i.e., JCurve Solutions and IShares Global go up and down completely randomly.

Pair Corralation between JCurve Solutions and IShares Global

Assuming the 90 days trading horizon JCurve Solutions is expected to generate 5.73 times more return on investment than IShares Global. However, JCurve Solutions is 5.73 times more volatile than iShares Global Healthcare. It trades about 0.04 of its potential returns per unit of risk. iShares Global Healthcare is currently generating about 0.07 per unit of risk. If you would invest  2.60  in JCurve Solutions on December 30, 2024 and sell it today you would earn a total of  0.10  from holding JCurve Solutions or generate 3.85% return on investment over 90 days.

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

JCurve Solutions  vs.  iShares Global Healthcare

JCurve Solutions

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JCurve Solutions are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, JCurve Solutions may actually be approaching a critical reversion point that can send shares even higher in April 2025.

iShares Global Healthcare

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Global Healthcare are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward-looking indicators, IShares Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JCurve Solutions and IShares Global

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

The idea behind JCurve Solutions and iShares Global Healthcare 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.