Correlation Between JNS Holdings and Arcadis NV

Can any of the company-specific risk be diversified away by investing in both JNS Holdings and Arcadis NV 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 JNS Holdings and Arcadis NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JNS Holdings Corp and Arcadis NV, you can compare the effects of market volatilities on JNS Holdings and Arcadis NV 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 JNS Holdings with a short position of Arcadis NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNS Holdings and Arcadis NV.

Diversification Opportunities for JNS Holdings and Arcadis NV

0.86

Correlation Coefficient

JNS Holdings  Arcadis NV

Very poor diversification

The 3 months correlation between JNS and Arcadis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Arcadis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcadis NV and JNS Holdings 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 JNS Holdings Corp are associated (or correlated) with Arcadis NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcadis NV has no effect on the direction of JNS Holdings i.e., JNS Holdings and Arcadis NV go up and down completely randomly.

Pair Corralation between JNS Holdings and Arcadis NV

Given the investment horizon of 90 days JNS Holdings Corp is expected to generate 6.84 times more return on investment than Arcadis NV. However, JNS Holdings is 6.84 times more volatile than Arcadis NV. It trades about -0.01 of its potential returns per unit of risk. Arcadis NV is currently generating about -0.17 per unit of risk. If you would invest  0.24  in JNS Holdings Corp on December 27, 2024 and sell it today you would lose (0.06) from holding JNS Holdings Corp or give up 25.0% of portfolio value over 90 days.

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

JNS Holdings Corp  vs.  Arcadis NV

JNS Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days JNS Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Arcadis NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arcadis NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.

Pair Trading with JNS Holdings and Arcadis NV

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

The idea behind JNS Holdings Corp and Arcadis NV 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.