Correlation Between Jetblack Corp and Mercurity Fintech

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

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

Diversification Opportunities for Jetblack Corp and Mercurity Fintech

0.42

Correlation Coefficient

Jetblack Corp  Mercurity Fintech

Very weak diversification

The 3 months correlation between Jetblack and Mercurity is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jetblack Corp and Mercurity Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercurity Fintech Holding and Jetblack Corp 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 Jetblack Corp are associated (or correlated) with Mercurity Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercurity Fintech Holding has no effect on the direction of Jetblack Corp i.e., Jetblack Corp and Mercurity Fintech go up and down completely randomly.

Pair Corralation between Jetblack Corp and Mercurity Fintech

Given the investment horizon of 90 days Jetblack Corp is expected to under-perform the Mercurity Fintech. In addition to that, Jetblack Corp is 1.14 times more volatile than Mercurity Fintech Holding. It trades about -0.02 of its total potential returns per unit of risk. Mercurity Fintech Holding is currently generating about 0.01 per unit of volatility. If you would invest  685.00  in Mercurity Fintech Holding on May 6, 2025 and sell it today you would lose (272.00) from holding Mercurity Fintech Holding or give up 39.71% of portfolio value over 90 days.

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

Jetblack Corp  vs.  Mercurity Fintech Holding

Jetblack Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jetblack Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Mercurity Fintech Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mercurity Fintech Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly weak technical and fundamental indicators, Mercurity Fintech may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Jetblack Corp and Mercurity Fintech

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

The idea behind Jetblack Corp and Mercurity Fintech Holding 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.