Correlation Between JIADE LIMITED and Jack Henry

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

By analyzing existing cross correlation between JIADE LIMITED Common and Jack Henry Associates, you can compare the effects of market volatilities on JIADE LIMITED and Jack Henry 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 JIADE LIMITED with a short position of Jack Henry. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIADE LIMITED and Jack Henry.

Diversification Opportunities for JIADE LIMITED and Jack Henry

-0.28

Correlation Coefficient

JIADE LIMITED  Jack Henry

Very good diversification

The 3 months correlation between JIADE and Jack is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding JIADE LIMITED Common and Jack Henry Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Henry Associates and JIADE LIMITED 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 JIADE LIMITED Common are associated (or correlated) with Jack Henry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Henry Associates has no effect on the direction of JIADE LIMITED i.e., JIADE LIMITED and Jack Henry go up and down completely randomly.

Pair Corralation between JIADE LIMITED and Jack Henry

Given the investment horizon of 90 days JIADE LIMITED Common is expected to under-perform the Jack Henry. In addition to that, JIADE LIMITED is 3.89 times more volatile than Jack Henry Associates. It trades about -0.12 of its total potential returns per unit of risk. Jack Henry Associates is currently generating about 0.04 per unit of volatility. If you would invest  17,451  in Jack Henry Associates on December 28, 2024 and sell it today you would earn a total of  481.00  from holding Jack Henry Associates or generate 2.76% return on investment over 90 days.

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

JIADE LIMITED Common  vs.  Jack Henry Associates

JIADE LIMITED Common

Risk-Adjusted Performance

Weak

Over the last 90 days JIADE LIMITED Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Jack Henry Associates

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jack Henry Associates are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical indicators, Jack Henry is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JIADE LIMITED and Jack Henry

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

The idea behind JIADE LIMITED Common and Jack Henry Associates 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.