Correlation Between JNS Holdings and ENGlobal

Can any of the company-specific risk be diversified away by investing in both JNS Holdings and ENGlobal 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 ENGlobal 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 ENGlobal, you can compare the effects of market volatilities on JNS Holdings and ENGlobal 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 ENGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNS Holdings and ENGlobal.

Diversification Opportunities for JNS Holdings and ENGlobal

-0.02

Correlation Coefficient

JNS Holdings  ENGlobal

Good diversification

The 3 months correlation between JNS and ENGlobal is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and ENGlobal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGlobal 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 ENGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGlobal has no effect on the direction of JNS Holdings i.e., JNS Holdings and ENGlobal go up and down completely randomly.

Pair Corralation between JNS Holdings and ENGlobal

If you would invest  0.25  in JNS Holdings Corp on October 26, 2024 and sell it today you would earn a total of  0.01  from holding JNS Holdings Corp or generate 4.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

JNS Holdings Corp  vs.  ENGlobal

JNS Holdings Corp

Risk-Adjusted Performance

0 of 100

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 fairly strong basic indicators, JNS Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

ENGlobal

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with JNS Holdings and ENGlobal

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

The idea behind JNS Holdings Corp and ENGlobal 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.