Correlation Between Jay Mart and Grande Hospitality

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

By analyzing existing cross correlation between Jay Mart Public and Grande Hospitality Real, you can compare the effects of market volatilities on Jay Mart and Grande Hospitality 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 Jay Mart with a short position of Grande Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Grande Hospitality.

Diversification Opportunities for Jay Mart and Grande Hospitality

0.0

Correlation Coefficient

Jay Mart  Grande Hospitality

Pay attention - limited upside

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

Pair Corralation between Jay Mart and Grande Hospitality

If you would invest (100.00) in Jay Mart Public on October 1, 2024 and sell it today you would earn a total of  100.00  from holding Jay Mart Public 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

Jay Mart Public  vs.  Grande Hospitality Real

Jay Mart Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jay Mart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Jay Mart is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Grande Hospitality Real

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jay Mart and Grande Hospitality

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

The idea behind Jay Mart Public and Grande Hospitality Real 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.