Correlation Between Janone and 126650BQ2

Can any of the company-specific risk be diversified away by investing in both Janone and 126650BQ2 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 Janone and 126650BQ2 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Janone Inc and US126650BQ21, you can compare the effects of market volatilities on Janone and 126650BQ2 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 Janone with a short position of 126650BQ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janone and 126650BQ2.

Diversification Opportunities for Janone and 126650BQ2

-0.09

Correlation Coefficient

Janone  126650BQ2

Good diversification

The 3 months correlation between Janone and 126650BQ2 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Janone Inc and US126650BQ21 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US126650BQ21 and Janone 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 Janone Inc are associated (or correlated) with 126650BQ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US126650BQ21 has no effect on the direction of Janone i.e., Janone and 126650BQ2 go up and down completely randomly.

Pair Corralation between Janone and 126650BQ2

Considering the 90-day investment horizon Janone Inc is expected to under-perform the 126650BQ2. In addition to that, Janone is 4.24 times more volatile than US126650BQ21. It trades about -0.27 of its total potential returns per unit of risk. US126650BQ21 is currently generating about 0.27 per unit of volatility. If you would invest  10,213  in US126650BQ21 on March 9, 2024 and sell it today you would earn a total of  128.00  from holding US126650BQ21 or generate 1.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	13.64%
Values	Daily Returns

Janone Inc  vs.  US126650BQ21

Janone Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Janone Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Janone displayed solid returns over the last few months and may actually be approaching a breakup point.

US126650BQ21

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in US126650BQ21 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 126650BQ2 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Janone and 126650BQ2

The main advantage of trading using opposite Janone and 126650BQ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janone position performs unexpectedly, 126650BQ2 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 126650BQ2 will offset losses from the drop in 126650BQ2's long position.

The idea behind Janone Inc and US126650BQ21 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.