Correlation Between JSC National and Global Atomic

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

By analyzing existing cross correlation between JSC National Atomic and Global Atomic Corp, you can compare the effects of market volatilities on JSC National and Global Atomic 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 JSC National with a short position of Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC National and Global Atomic.

Diversification Opportunities for JSC National and Global Atomic

-0.45

Correlation Coefficient

JSC National  Global Atomic

Very good diversification

The 3 months correlation between JSC and Global is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JSC National Atomic and Global Atomic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Atomic Corp and JSC National 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 JSC National Atomic are associated (or correlated) with Global Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Atomic Corp has no effect on the direction of JSC National i.e., JSC National and Global Atomic go up and down completely randomly.

Pair Corralation between JSC National and Global Atomic

Assuming the 90 days trading horizon JSC National Atomic is expected to generate 0.52 times more return on investment than Global Atomic. However, JSC National Atomic is 1.94 times less risky than Global Atomic. It trades about 0.05 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.04 per unit of risk. If you would invest  2,536  in JSC National Atomic on September 25, 2024 and sell it today you would earn a total of  1,254  from holding JSC National Atomic or generate 49.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.4%
Values	Daily Returns

JSC National Atomic  vs.  Global Atomic Corp

JSC National Atomic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JSC National Atomic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, JSC National is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Global Atomic Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Atomic Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with JSC National and Global Atomic

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

The idea behind JSC National Atomic and Global Atomic Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.