Correlation Between Hurco Companies and JDEPNA

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

By analyzing existing cross correlation between Hurco Companies and JDEPNA 1375 15 JAN 27, you can compare the effects of market volatilities on Hurco Companies and JDEPNA 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 Hurco Companies with a short position of JDEPNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and JDEPNA.

Diversification Opportunities for Hurco Companies and JDEPNA

0.25

Correlation Coefficient

Hurco Companies  JDEPNA

Modest diversification

The 3 months correlation between Hurco and JDEPNA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and JDEPNA 1375 15 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JDEPNA 1375 15 and Hurco Companies 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 Hurco Companies are associated (or correlated) with JDEPNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JDEPNA 1375 15 has no effect on the direction of Hurco Companies i.e., Hurco Companies and JDEPNA go up and down completely randomly.

Pair Corralation between Hurco Companies and JDEPNA

Given the investment horizon of 90 days Hurco Companies is expected to under-perform the JDEPNA. In addition to that, Hurco Companies is 3.81 times more volatile than JDEPNA 1375 15 JAN 27. It trades about -0.06 of its total potential returns per unit of risk. JDEPNA 1375 15 JAN 27 is currently generating about -0.2 per unit of volatility. If you would invest  9,339  in JDEPNA 1375 15 JAN 27 on September 29, 2024 and sell it today you would lose (382.00) from holding JDEPNA 1375 15 JAN 27 or give up 4.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	55.56%
Values	Daily Returns

Hurco Companies  vs.  JDEPNA 1375 15 JAN 27

Hurco Companies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hurco Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

JDEPNA 1375 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JDEPNA 1375 15 JAN 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for JDEPNA 1375 15 JAN 27 investors.

Pair Trading with Hurco Companies and JDEPNA

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

The idea behind Hurco Companies and JDEPNA 1375 15 JAN 27 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.