Correlation Between Hivemapper and JAR

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

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

Diversification Opportunities for Hivemapper and JAR

0.8

Correlation Coefficient

Hivemapper  JAR

Very poor diversification

The 3 months correlation between Hivemapper and JAR is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hivemapper and JAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAR and Hivemapper 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 Hivemapper are associated (or correlated) with JAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAR has no effect on the direction of Hivemapper i.e., Hivemapper and JAR go up and down completely randomly.

Pair Corralation between Hivemapper and JAR

Assuming the 90 days trading horizon Hivemapper is expected to under-perform the JAR. In addition to that, Hivemapper is 2.23 times more volatile than JAR. It trades about -0.12 of its total potential returns per unit of risk. JAR is currently generating about -0.09 per unit of volatility. If you would invest  0.42  in JAR on January 24, 2025 and sell it today you would lose (0.09) from holding JAR or give up 21.87% of portfolio value over 90 days.

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

Hivemapper  vs.  JAR

Hivemapper

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hivemapper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for Hivemapper shareholders.

JAR

Risk-Adjusted Performance

Very Weak

Over the last 90 days JAR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for JAR shareholders.

Pair Trading with Hivemapper and JAR

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

The idea behind Hivemapper and JAR 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.

Check out your portfolio center.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.