Correlation Between Jacob Small and CONSOLIDATED

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

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

Diversification Opportunities for Jacob Small and CONSOLIDATED

0.0

Correlation Coefficient

Jacob Small  CONSOLIDATED

Pay attention - limited upside

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

Pair Corralation between Jacob Small and CONSOLIDATED

If you would invest  2,089  in Jacob Small Cap on May 16, 2025 and sell it today you would earn a total of  584.00  from holding Jacob Small Cap or generate 27.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jacob Small Cap  vs.  CONSOLIDATED EDISON N

Jacob Small Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jacob Small Cap are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Jacob Small showed solid returns over the last few months and may actually be approaching a breakup point.

CONSOLIDATED EDISON

Risk-Adjusted Performance

Good

Over the last 90 days CONSOLIDATED EDISON N has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CONSOLIDATED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jacob Small and CONSOLIDATED

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

The idea behind Jacob Small Cap and CONSOLIDATED EDISON N 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.