Correlation Between Joint Stock and Caspian Services

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

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

Diversification Opportunities for Joint Stock and Caspian Services

0.0

Correlation Coefficient

Joint Stock  Caspian Services

Pay attention - limited upside

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

Pair Corralation between Joint Stock and Caspian Services

If you would invest  8,551  in Joint Stock on May 17, 2025 and sell it today you would earn a total of  1,040  from holding Joint Stock or generate 12.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Joint Stock  vs.  Caspian Services

Joint Stock

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Joint Stock are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Joint Stock demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Caspian Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Caspian Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Caspian Services 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 Joint Stock and Caspian Services

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

The idea behind Joint Stock and Caspian Services 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.