Correlation Between Big Bird and JS Bank
Can any of the company-specific risk be diversified away by investing in both Big Bird and JS Bank 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 Big Bird and JS Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Bird Foods and JS Bank, you can compare the effects of market volatilities on Big Bird and JS Bank 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 Big Bird with a short position of JS Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Bird and JS Bank.
Diversification Opportunities for Big Bird and JS Bank
Good diversification
The 3 months correlation between Big and JSBL is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Big Bird Foods and JS Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Bank and Big Bird 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 Big Bird Foods are associated (or correlated) with JS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Bank has no effect on the direction of Big Bird i.e., Big Bird and JS Bank go up and down completely randomly.
Pair Corralation between Big Bird and JS Bank
Assuming the 90 days trading horizon Big Bird Foods is expected to under-perform the JS Bank. But the stock apears to be less risky and, when comparing its historical volatility, Big Bird Foods is 1.12 times less risky than JS Bank. The stock trades about -0.01 of its potential returns per unit of risk. The JS Bank is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 850.00 in JS Bank on April 25, 2025 and sell it today you would earn a total of 601.00 from holding JS Bank or generate 70.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Big Bird Foods vs. JS Bank
Performance |
Timeline |
Big Bird Foods |
JS Bank |
Big Bird and JS Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Big Bird and JS Bank
The main advantage of trading using opposite Big Bird and JS Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Bird position performs unexpectedly, JS Bank 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 JS Bank will offset losses from the drop in JS Bank's long position.Big Bird vs. Universal Insurance | Big Bird vs. EFU General Insurance | Big Bird vs. Agritech | Big Bird vs. Wah Nobel Chemicals |
JS Bank vs. MCB Investment Manag | JS Bank vs. Data Agro | JS Bank vs. Metropolitan Steel Corp | JS Bank vs. National Foods |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements |