Correlation Between Jay Mart and XSpring Capital

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

By analyzing existing cross correlation between Jay Mart Public and XSpring Capital Public, you can compare the effects of market volatilities on Jay Mart and XSpring Capital 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 Jay Mart with a short position of XSpring Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and XSpring Capital.

Diversification Opportunities for Jay Mart and XSpring Capital

0.37

Correlation Coefficient

Jay Mart  XSpring Capital

Weak diversification

The 3 months correlation between Jay and XSpring is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and XSpring Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpring Capital Public and Jay Mart 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 Jay Mart Public are associated (or correlated) with XSpring Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpring Capital Public has no effect on the direction of Jay Mart i.e., Jay Mart and XSpring Capital go up and down completely randomly.

Pair Corralation between Jay Mart and XSpring Capital

Assuming the 90 days trading horizon Jay Mart Public is expected to generate 0.69 times more return on investment than XSpring Capital. However, Jay Mart Public is 1.46 times less risky than XSpring Capital. It trades about 0.48 of its potential returns per unit of risk. XSpring Capital Public is currently generating about -0.04 per unit of risk. If you would invest  540.00  in Jay Mart Public on April 23, 2025 and sell it today you would earn a total of  210.00  from holding Jay Mart Public or generate 38.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Jay Mart Public  vs.  XSpring Capital Public

Jay Mart Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jay Mart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Jay Mart is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

XSpring Capital Public

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Jay Mart and XSpring Capital

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

The idea behind Jay Mart Public and XSpring Capital Public 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.