Correlation Between JCET Group and Linktel Technologies

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

By analyzing existing cross correlation between JCET Group Co and Linktel Technologies Co, you can compare the effects of market volatilities on JCET Group and Linktel Technologies 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 JCET Group with a short position of Linktel Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCET Group and Linktel Technologies.

Diversification Opportunities for JCET Group and Linktel Technologies

0.83

Correlation Coefficient

JCET Group  Linktel Technologies

Very poor diversification

The 3 months correlation between JCET and Linktel is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding JCET Group Co and Linktel Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linktel Technologies and JCET Group 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 JCET Group Co are associated (or correlated) with Linktel Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linktel Technologies has no effect on the direction of JCET Group i.e., JCET Group and Linktel Technologies go up and down completely randomly.

Pair Corralation between JCET Group and Linktel Technologies

Assuming the 90 days trading horizon JCET Group Co is expected to generate 0.61 times more return on investment than Linktel Technologies. However, JCET Group Co is 1.65 times less risky than Linktel Technologies. It trades about 0.09 of its potential returns per unit of risk. Linktel Technologies Co is currently generating about 0.04 per unit of risk. If you would invest  3,533  in JCET Group Co on September 28, 2024 and sell it today you would earn a total of  512.00  from holding JCET Group Co or generate 14.49% return on investment over 90 days.

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

JCET Group Co  vs.  Linktel Technologies Co

JCET Group

Risk-Adjusted Performance

7 of 100

Modest

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

Linktel Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Linktel Technologies Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Linktel Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JCET Group and Linktel Technologies

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

The idea behind JCET Group Co and Linktel Technologies Co 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.