Correlation Between JNS Holdings and Renavotio

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

Diversification Opportunities for JNS Holdings and Renavotio

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Correlation Coefficient

JNS Holdings  Renavotio

Pay attention - limited upside

The 3 months correlation between JNS and Renavotio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Renavotio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renavotio 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 Renavotio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renavotio has no effect on the direction of JNS Holdings i.e., JNS Holdings and Renavotio go up and down completely randomly.

Pair Corralation between JNS Holdings and Renavotio

Given the investment horizon of 90 days JNS Holdings is expected to generate 18.89 times less return on investment than Renavotio. But when comparing it to its historical volatility, JNS Holdings Corp is 4.6 times less risky than Renavotio. It trades about 0.01 of its potential returns per unit of risk. Renavotio is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.98  in Renavotio on October 25, 2024 and sell it today you would lose (0.78) from holding Renavotio or give up 79.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	23.94%
Values	Daily Returns

JNS Holdings Corp  vs.  Renavotio

JNS Holdings Corp

Risk-Adjusted Performance

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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.

Renavotio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Renavotio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Renavotio is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with JNS Holdings and Renavotio

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

The idea behind JNS Holdings Corp and Renavotio 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.