Correlation Between Triterras and Jack Henry

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

By analyzing existing cross correlation between Triterras and Jack Henry Associates, you can compare the effects of market volatilities on Triterras and Jack Henry 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 Triterras with a short position of Jack Henry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triterras and Jack Henry.

Diversification Opportunities for Triterras and Jack Henry

0.0

Correlation Coefficient

Triterras  Jack Henry

Pay attention - limited upside

The 3 months correlation between Triterras and Jack is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Triterras and Jack Henry Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Henry Associates and Triterras 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 Triterras are associated (or correlated) with Jack Henry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Henry Associates has no effect on the direction of Triterras i.e., Triterras and Jack Henry go up and down completely randomly.

Pair Corralation between Triterras and Jack Henry

If you would invest (100.00) in Triterras on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Triterras or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Triterras  vs.  Jack Henry Associates

Triterras

Risk-Adjusted Performance

Very Weak

Over the last 90 days Triterras has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Triterras is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Jack Henry Associates

Risk-Adjusted Performance

Weak

Over the last 90 days Jack Henry Associates has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Jack Henry is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Triterras and Jack Henry

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

The idea behind Triterras and Jack Henry Associates 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.