Correlation Between Jb Financial and MegaStudyEdu
Can any of the company-specific risk be diversified away by investing in both Jb Financial and MegaStudyEdu 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 Jb Financial and MegaStudyEdu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and MegaStudyEdu Co, you can compare the effects of market volatilities on Jb Financial and MegaStudyEdu 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 Jb Financial with a short position of MegaStudyEdu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and MegaStudyEdu.
Diversification Opportunities for Jb Financial and MegaStudyEdu
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 175330 and MegaStudyEdu is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and MegaStudyEdu Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MegaStudyEdu and Jb Financial 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 Jb Financial are associated (or correlated) with MegaStudyEdu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MegaStudyEdu has no effect on the direction of Jb Financial i.e., Jb Financial and MegaStudyEdu go up and down completely randomly.
Pair Corralation between Jb Financial and MegaStudyEdu
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.99 times more return on investment than MegaStudyEdu. However, Jb Financial is 1.02 times less risky than MegaStudyEdu. It trades about 0.08 of its potential returns per unit of risk. MegaStudyEdu Co is currently generating about 0.01 per unit of risk. If you would invest 1,528,655 in Jb Financial on September 19, 2024 and sell it today you would earn a total of 162,345 from holding Jb Financial or generate 10.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jb Financial vs. MegaStudyEdu Co
Performance |
Timeline |
Jb Financial |
MegaStudyEdu |
Jb Financial and MegaStudyEdu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jb Financial and MegaStudyEdu
The main advantage of trading using opposite Jb Financial and MegaStudyEdu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, MegaStudyEdu 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 MegaStudyEdu will offset losses from the drop in MegaStudyEdu's long position.Jb Financial vs. Samlip General Foods | Jb Financial vs. Hyundai Green Food | Jb Financial vs. Dong A Steel Technology | Jb Financial vs. Nature and Environment |
MegaStudyEdu vs. Daou Data Corp | MegaStudyEdu vs. Solution Advanced Technology | MegaStudyEdu vs. Busan Industrial Co | MegaStudyEdu vs. Busan Ind |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Correlations Find global opportunities by holding instruments from different markets | |
CEOs Directory Screen CEOs from public companies around the world | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |