Correlation Between Jay Mart and E For

Can any of the company-specific risk be diversified away by investing in both Jay Mart and E For 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 Jay Mart and E For into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jay Mart Public and E for L, you can compare the effects of market volatilities on Jay Mart and E For 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 Jay Mart with a short position of E For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and E For.

Diversification Opportunities for Jay Mart and E For

-0.83

Correlation Coefficient

Jay Mart  E For

Pay attention - limited upside

The 3 months correlation between Jay and EFORL is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and E for L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E for L and Jay Mart 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 Jay Mart Public are associated (or correlated) with E For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E for L has no effect on the direction of Jay Mart i.e., Jay Mart and E For go up and down completely randomly.

Pair Corralation between Jay Mart and E For

Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the E For. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 2.71 times less risky than E For. The stock trades about -0.05 of its potential returns per unit of risk. The E for L is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  13.00  in E for L on September 4, 2024 and sell it today you would earn a total of  15.00  from holding E for L or generate 115.38% return on investment over 90 days.

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

Jay Mart Public  vs.  E for L

Jay Mart Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jay Mart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

E for L

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in E for L are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, E For sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jay Mart and E For

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

The idea behind Jay Mart Public and E for L 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 Managers module to screen money managers from public funds and ETFs managed around the world.