Correlation Between JE Cleantech and ATVRockN
Can any of the company-specific risk be diversified away by investing in both JE Cleantech and ATVRockN 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 JE Cleantech and ATVRockN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JE Cleantech Holdings and ATVRockN, you can compare the effects of market volatilities on JE Cleantech and ATVRockN 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 JE Cleantech with a short position of ATVRockN. Check out your portfolio center. Please also check ongoing floating volatility patterns of JE Cleantech and ATVRockN.
Diversification Opportunities for JE Cleantech and ATVRockN
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JCSE and ATVRockN is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding JE Cleantech Holdings and ATVRockN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATVRockN and JE Cleantech 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 JE Cleantech Holdings are associated (or correlated) with ATVRockN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATVRockN has no effect on the direction of JE Cleantech i.e., JE Cleantech and ATVRockN go up and down completely randomly.
Pair Corralation between JE Cleantech and ATVRockN
Given the investment horizon of 90 days JE Cleantech Holdings is expected to under-perform the ATVRockN. But the stock apears to be less risky and, when comparing its historical volatility, JE Cleantech Holdings is 3.53 times less risky than ATVRockN. The stock trades about -0.08 of its potential returns per unit of risk. The ATVRockN is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.09 in ATVRockN on December 1, 2024 and sell it today you would earn a total of 0.01 from holding ATVRockN or generate 11.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.36% |
Values | Daily Returns |
JE Cleantech Holdings vs. ATVRockN
Performance |
Timeline |
JE Cleantech Holdings |
ATVRockN |
JE Cleantech and ATVRockN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JE Cleantech and ATVRockN
The main advantage of trading using opposite JE Cleantech and ATVRockN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JE Cleantech position performs unexpectedly, ATVRockN 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 ATVRockN will offset losses from the drop in ATVRockN's long position.JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial Corp |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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