Correlation Between Joint Corp and Cadeler AS

Can any of the company-specific risk be diversified away by investing in both Joint Corp and Cadeler AS 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 Joint Corp and Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Joint Corp and Cadeler AS

0.34

Correlation Coefficient

Joint Corp  Cadeler AS

Weak diversification

The 3 months correlation between Joint and Cadeler is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS and Joint Corp 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 The Joint Corp are associated (or correlated) with Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of Joint Corp i.e., Joint Corp and Cadeler AS go up and down completely randomly.

Pair Corralation between Joint Corp and Cadeler AS

Given the investment horizon of 90 days The Joint Corp is expected to under-perform the Cadeler AS. In addition to that, Joint Corp is 1.75 times more volatile than Cadeler AS. It trades about -0.21 of its total potential returns per unit of risk. Cadeler AS is currently generating about -0.15 per unit of volatility. If you would invest  2,378  in Cadeler AS on October 10, 2024 and sell it today you would lose (104.00) from holding Cadeler AS or give up 4.37% of portfolio value over 90 days.

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

The Joint Corp  vs.  Cadeler AS

Joint Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Cadeler AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cadeler AS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Joint Corp and Cadeler AS

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

The idea behind The Joint Corp and Cadeler AS 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.