Correlation Between JMIN and ZIV

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

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

Diversification Opportunities for JMIN and ZIV

0.0

Correlation Coefficient

JMIN  ZIV

Pay attention - limited upside

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

Pair Corralation between JMIN and ZIV

If you would invest (100.00) in ZIV on September 15, 2025 and sell it today you would earn a total of  100.00  from holding ZIV or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

JMIN  vs.  ZIV

JMIN

Risk-Adjusted Performance

Weakest

Over the last 90 days JMIN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, JMIN is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

ZIV

Risk-Adjusted Performance

Weakest

Over the last 90 days ZIV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, ZIV is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with JMIN and ZIV

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

The idea behind JMIN and ZIV 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.