Correlation Between JFT Strategies and Edgepoint Cdn

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Can any of the company-specific risk be diversified away by investing in both JFT Strategies and Edgepoint Cdn 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 JFT Strategies and Edgepoint Cdn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JFT Strategies and Edgepoint Cdn Growth, you can compare the effects of market volatilities on JFT Strategies and Edgepoint Cdn 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 JFT Strategies with a short position of Edgepoint Cdn. Check out your portfolio center. Please also check ongoing floating volatility patterns of JFT Strategies and Edgepoint Cdn.

Diversification Opportunities for JFT Strategies and Edgepoint Cdn

-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between JFT and Edgepoint is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JFT Strategies and Edgepoint Cdn Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Cdn Growth and JFT Strategies 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 JFT Strategies are associated (or correlated) with Edgepoint Cdn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Cdn Growth has no effect on the direction of JFT Strategies i.e., JFT Strategies and Edgepoint Cdn go up and down completely randomly.

Pair Corralation between JFT Strategies and Edgepoint Cdn

Assuming the 90 days trading horizon JFT Strategies is expected to generate 1.21 times less return on investment than Edgepoint Cdn. In addition to that, JFT Strategies is 1.92 times more volatile than Edgepoint Cdn Growth. It trades about 0.0 of its total potential returns per unit of risk. Edgepoint Cdn Growth is currently generating about 0.01 per unit of volatility. If you would invest  3,087  in Edgepoint Cdn Growth on October 11, 2024 and sell it today you would earn a total of  6.00  from holding Edgepoint Cdn Growth or generate 0.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

JFT Strategies  vs.  Edgepoint Cdn Growth

 Performance 
       Timeline  
JFT Strategies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JFT Strategies has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, JFT Strategies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Edgepoint Cdn Growth 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Edgepoint Cdn Growth has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady forward-looking indicators, Edgepoint Cdn is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

JFT Strategies and Edgepoint Cdn Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JFT Strategies and Edgepoint Cdn

The main advantage of trading using opposite JFT Strategies and Edgepoint Cdn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JFT Strategies position performs unexpectedly, Edgepoint Cdn 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 Edgepoint Cdn will offset losses from the drop in Edgepoint Cdn's long position.
The idea behind JFT Strategies and Edgepoint Cdn Growth 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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