Correlation Between Joint Stock and 00101JAG1

Can any of the company-specific risk be diversified away by investing in both Joint Stock and 00101JAG1 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 00101JAG1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Joint Stock and US00101JAG13, you can compare the effects of market volatilities on Joint Stock and 00101JAG1 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 00101JAG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and 00101JAG1.

Diversification Opportunities for Joint Stock and 00101JAG1

0.08

Correlation Coefficient

Joint Stock  00101JAG1

Significant diversification

The 3 months correlation between Joint and 00101JAG1 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock and US00101JAG13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US00101JAG13 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 00101JAG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US00101JAG13 has no effect on the direction of Joint Stock i.e., Joint Stock and 00101JAG1 go up and down completely randomly.

Pair Corralation between Joint Stock and 00101JAG1

Given the investment horizon of 90 days Joint Stock is expected to generate 1.98 times less return on investment than 00101JAG1. But when comparing it to its historical volatility, Joint Stock is 1.38 times less risky than 00101JAG1. It trades about 0.1 of its potential returns per unit of risk. US00101JAG13 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6,479  in US00101JAG13 on May 16, 2025 and sell it today you would earn a total of  577.00  from holding US00101JAG13 or generate 8.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	30.65%
Values	Daily Returns

Joint Stock  vs.  US00101JAG13

Joint Stock

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Joint Stock are ranked lower than 7 (%) 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.

US00101JAG13

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in US00101JAG13 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 00101JAG1 sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Joint Stock and 00101JAG1

The main advantage of trading using opposite Joint Stock and 00101JAG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock position performs unexpectedly, 00101JAG1 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 00101JAG1 will offset losses from the drop in 00101JAG1's long position.

The idea behind Joint Stock and US00101JAG13 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..