Correlation Between JNS Holdings and Vinci SA

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

Diversification Opportunities for JNS Holdings and Vinci SA

-0.8

Correlation Coefficient

JNS Holdings  Vinci SA

Pay attention - limited upside

The 3 months correlation between JNS and Vinci is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Vinci SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci SA ADR 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 Vinci SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci SA ADR has no effect on the direction of JNS Holdings i.e., JNS Holdings and Vinci SA go up and down completely randomly.

Pair Corralation between JNS Holdings and Vinci SA

Given the investment horizon of 90 days JNS Holdings Corp is expected to under-perform the Vinci SA. In addition to that, JNS Holdings is 5.73 times more volatile than Vinci SA ADR. It trades about -0.05 of its total potential returns per unit of risk. Vinci SA ADR is currently generating about 0.28 per unit of volatility. If you would invest  2,539  in Vinci SA ADR on December 18, 2024 and sell it today you would earn a total of  694.00  from holding Vinci SA ADR or generate 27.33% return on investment over 90 days.

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

JNS Holdings Corp  vs.  Vinci SA ADR

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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Vinci SA ADR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vinci SA ADR are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Vinci SA showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JNS Holdings and Vinci SA

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

The idea behind JNS Holdings Corp and Vinci SA ADR 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.