Correlation Between Joint Corp and SMX Public

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

Diversification Opportunities for Joint Corp and SMX Public

-0.13

Correlation Coefficient

Joint Corp  SMX Public

Good diversification

The 3 months correlation between Joint and SMX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and SMX Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMX Public Limited 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 SMX Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMX Public Limited has no effect on the direction of Joint Corp i.e., Joint Corp and SMX Public go up and down completely randomly.

Pair Corralation between Joint Corp and SMX Public

Given the investment horizon of 90 days Joint Corp is expected to generate 188.77 times less return on investment than SMX Public. But when comparing it to its historical volatility, The Joint Corp is 15.74 times less risky than SMX Public. It trades about 0.01 of its potential returns per unit of risk. SMX Public Limited is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  0.93  in SMX Public Limited on December 17, 2024 and sell it today you would earn a total of  1.82  from holding SMX Public Limited or generate 195.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

The Joint Corp  vs.  SMX Public Limited

Joint Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Joint Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

SMX Public Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SMX Public Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, SMX Public showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Joint Corp and SMX Public

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

The idea behind The Joint Corp and SMX Public Limited 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.