Correlation Between Jaguar Global and Signal Hill

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

By analyzing existing cross correlation between Jaguar Global Growth and Signal Hill Acquisition, you can compare the effects of market volatilities on Jaguar Global and Signal Hill 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 Jaguar Global with a short position of Signal Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Global and Signal Hill.

Diversification Opportunities for Jaguar Global and Signal Hill

0.17

Correlation Coefficient

Jaguar Global  Signal Hill

Average diversification

The 3 months correlation between Jaguar and Signal is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Global Growth and Signal Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signal Hill Acquisition and Jaguar Global 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 Jaguar Global Growth are associated (or correlated) with Signal Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signal Hill Acquisition has no effect on the direction of Jaguar Global i.e., Jaguar Global and Signal Hill go up and down completely randomly.

Pair Corralation between Jaguar Global and Signal Hill

If you would invest  1,042  in Signal Hill Acquisition on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Signal Hill Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jaguar Global Growth  vs.  Signal Hill Acquisition

Jaguar Global Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jaguar Global Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Jaguar Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Signal Hill Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Signal Hill Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Signal Hill is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Jaguar Global and Signal Hill

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

The idea behind Jaguar Global Growth and Signal Hill Acquisition 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.