Correlation Between JIADE LIMITED and Science Applications

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

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

Diversification Opportunities for JIADE LIMITED and Science Applications

0.61

Correlation Coefficient

JIADE LIMITED  Science Applications

Poor diversification

The 3 months correlation between JIADE and Science is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding JIADE LIMITED Common and Science Applications Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Applications and JIADE LIMITED 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 JIADE LIMITED Common are associated (or correlated) with Science Applications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Applications has no effect on the direction of JIADE LIMITED i.e., JIADE LIMITED and Science Applications go up and down completely randomly.

Pair Corralation between JIADE LIMITED and Science Applications

Given the investment horizon of 90 days JIADE LIMITED Common is expected to under-perform the Science Applications. In addition to that, JIADE LIMITED is 4.15 times more volatile than Science Applications International. It trades about -0.09 of its total potential returns per unit of risk. Science Applications International is currently generating about -0.03 per unit of volatility. If you would invest  11,760  in Science Applications International on May 2, 2025 and sell it today you would lose (593.50) from holding Science Applications International or give up 5.05% of portfolio value over 90 days.

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

JIADE LIMITED Common  vs.  Science Applications Internati

JIADE LIMITED Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days JIADE LIMITED Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Science Applications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Science Applications International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Science Applications is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JIADE LIMITED and Science Applications

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

The idea behind JIADE LIMITED Common and Science Applications International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.