Correlation Between Princeton Capital and Julius Bär

Can any of the company-specific risk be diversified away by investing in both Princeton Capital and Julius Bär 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 Princeton Capital and Julius Bär into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Princeton Capital and Julius Br Gruppe, you can compare the effects of market volatilities on Princeton Capital and Julius Bär 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 Princeton Capital with a short position of Julius Bär. Check out your portfolio center. Please also check ongoing floating volatility patterns of Princeton Capital and Julius Bär.

Diversification Opportunities for Princeton Capital and Julius Bär

0.08

Correlation Coefficient

Princeton Capital  Julius Bär

Significant diversification

The 3 months correlation between Princeton and Julius is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Princeton Capital and Julius Br Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Br Gruppe and Princeton Capital 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 Princeton Capital are associated (or correlated) with Julius Bär. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Br Gruppe has no effect on the direction of Princeton Capital i.e., Princeton Capital and Julius Bär go up and down completely randomly.

Pair Corralation between Princeton Capital and Julius Bär

Given the investment horizon of 90 days Princeton Capital is expected to generate 5.0 times less return on investment than Julius Bär. In addition to that, Princeton Capital is 2.69 times more volatile than Julius Br Gruppe. It trades about 0.01 of its total potential returns per unit of risk. Julius Br Gruppe is currently generating about 0.1 per unit of volatility. If you would invest  6,322  in Julius Br Gruppe on December 30, 2024 and sell it today you would earn a total of  849.00  from holding Julius Br Gruppe or generate 13.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Princeton Capital  vs.  Julius Br Gruppe

Princeton Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Princeton Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Princeton Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Julius Br Gruppe

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Br Gruppe are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Julius Bär reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Princeton Capital and Julius Bär

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

The idea behind Princeton Capital and Julius Br Gruppe 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.