Correlation Between JHSF Participaes and Log In

Can any of the company-specific risk be diversified away by investing in both JHSF Participaes and Log In 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 JHSF Participaes and Log In into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JHSF Participaes SA and Log In Logstica Intermodal, you can compare the effects of market volatilities on JHSF Participaes and Log In 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 JHSF Participaes with a short position of Log In. Check out your portfolio center. Please also check ongoing floating volatility patterns of JHSF Participaes and Log In.

Diversification Opportunities for JHSF Participaes and Log In

0.59

Correlation Coefficient

JHSF Participaes  Log In

Very weak diversification

The 3 months correlation between JHSF and Log is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding JHSF Participaes SA and Log In Logstica Intermodal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Log In Logstica and JHSF Participaes 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 JHSF Participaes SA are associated (or correlated) with Log In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Log In Logstica has no effect on the direction of JHSF Participaes i.e., JHSF Participaes and Log In go up and down completely randomly.

Pair Corralation between JHSF Participaes and Log In

Assuming the 90 days trading horizon JHSF Participaes SA is expected to generate 1.14 times more return on investment than Log In. However, JHSF Participaes is 1.14 times more volatile than Log In Logstica Intermodal. It trades about 0.12 of its potential returns per unit of risk. Log In Logstica Intermodal is currently generating about 0.02 per unit of risk. If you would invest  360.00  in JHSF Participaes SA on December 28, 2024 and sell it today you would earn a total of  53.00  from holding JHSF Participaes SA or generate 14.72% return on investment over 90 days.

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

JHSF Participaes SA  vs.  Log In Logstica Intermodal

JHSF Participaes

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JHSF Participaes SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, JHSF Participaes unveiled solid returns over the last few months and may actually be approaching a breakup point.

Log In Logstica

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Log In Logstica Intermodal are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Log In 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 JHSF Participaes and Log In

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

The idea behind JHSF Participaes SA and Log In Logstica Intermodal 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.