Correlation Between JC Penney and IDI Insurance
Can any of the company-specific risk be diversified away by investing in both JC Penney and IDI Insurance 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 JC Penney and IDI Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J C Penney and IDI Insurance, you can compare the effects of market volatilities on JC Penney and IDI Insurance 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 JC Penney with a short position of IDI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Penney and IDI Insurance.
Diversification Opportunities for JC Penney and IDI Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JCP and IDI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding J C Penney and IDI Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDI Insurance and JC Penney 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 J C Penney are associated (or correlated) with IDI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDI Insurance has no effect on the direction of JC Penney i.e., JC Penney and IDI Insurance go up and down completely randomly.
Pair Corralation between JC Penney and IDI Insurance
If you would invest (100.00) in J C Penney on January 25, 2024 and sell it today you would earn a total of 100.00 from holding J C Penney or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
J C Penney vs. IDI Insurance
Performance |
| Timeline |
| J C Penney |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IDI Insurance |
JC Penney and IDI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JC Penney and IDI Insurance
The main advantage of trading using opposite JC Penney and IDI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Penney position performs unexpectedly, IDI Insurance 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 IDI Insurance will offset losses from the drop in IDI Insurance's long position.| JC Penney vs. Brandywine Realty Trust | JC Penney vs. Monster Beverage Corp | JC Penney vs. Wallbox NV | JC Penney vs. BRP Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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