Correlation Between JNS Holdings and Williams Industrial

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

Diversification Opportunities for JNS Holdings and Williams Industrial

-0.05

Correlation Coefficient

JNS Holdings  Williams Industrial

Good diversification

The 3 months correlation between JNS and Williams is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Williams Industrial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Williams Industrial 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 Williams Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Williams Industrial has no effect on the direction of JNS Holdings i.e., JNS Holdings and Williams Industrial go up and down completely randomly.

Pair Corralation between JNS Holdings and Williams Industrial

Given the investment horizon of 90 days JNS Holdings Corp is expected to generate 1.14 times more return on investment than Williams Industrial. However, JNS Holdings is 1.14 times more volatile than Williams Industrial Services. It trades about 0.01 of its potential returns per unit of risk. Williams Industrial Services is currently generating about -0.12 per unit of risk. If you would invest  0.54  in JNS Holdings Corp on October 10, 2024 and sell it today you would lose (0.27) from holding JNS Holdings Corp or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	25.86%
Values	Daily Returns

JNS Holdings Corp  vs.  Williams Industrial Services

JNS Holdings Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JNS Holdings Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, JNS Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Williams Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Williams Industrial Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Williams Industrial is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JNS Holdings and Williams Industrial

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

The idea behind JNS Holdings Corp and Williams Industrial Services 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .