Correlation Between Amdocs and Jxtg Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amdocs and Jxtg Holdings 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 Amdocs and Jxtg Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amdocs Limited and Jxtg Holdings, you can compare the effects of market volatilities on Amdocs and Jxtg Holdings 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 Amdocs with a short position of Jxtg Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amdocs and Jxtg Holdings.

Diversification Opportunities for Amdocs and Jxtg Holdings

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Amdocs and JXHGF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amdocs Limited and Jxtg Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jxtg Holdings and Amdocs 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 Amdocs Limited are associated (or correlated) with Jxtg Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jxtg Holdings has no effect on the direction of Amdocs i.e., Amdocs and Jxtg Holdings go up and down completely randomly.

Pair Corralation between Amdocs and Jxtg Holdings

Considering the 90-day investment horizon Amdocs Limited is expected to generate 1.02 times more return on investment than Jxtg Holdings. However, Amdocs is 1.02 times more volatile than Jxtg Holdings. It trades about 0.01 of its potential returns per unit of risk. Jxtg Holdings is currently generating about -0.15 per unit of risk. If you would invest  8,631  in Amdocs Limited on August 31, 2022 and sell it today you would earn a total of  12.00  from holding Amdocs Limited or generate 0.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Amdocs Limited  vs.  Jxtg Holdings

 Performance (%) 
       Timeline  
Amdocs Limited 
Amdocs Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Amdocs Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Amdocs is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Amdocs Price Channel

Jxtg Holdings 
JXHGF Performance
0 of 100
Over the last 90 days Jxtg Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

JXHGF Price Channel

Amdocs and Jxtg Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amdocs and Jxtg Holdings

The main advantage of trading using opposite Amdocs and Jxtg Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amdocs position performs unexpectedly, Jxtg Holdings 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 Jxtg Holdings will offset losses from the drop in Jxtg Holdings' long position.
Amdocs vs. Autodesk
Amdocs vs. Caci International
Amdocs vs. Cadence Design Sys
Amdocs vs. Fiserv Inc
The idea behind Amdocs Limited and Jxtg Holdings 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.
Jxtg Holdings vs. Marathon Petroleum Corp
Jxtg Holdings vs. Valero Energy Corp
Jxtg Holdings vs. Chevron Corp
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go