Correlation Between Technology Portfolio and Jacob Internet
Can any of the company-specific risk be diversified away by investing in both Technology Portfolio and Jacob Internet 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 Technology Portfolio and Jacob Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technology Portfolio Technology and Jacob Internet Fund, you can compare the effects of market volatilities on Technology Portfolio and Jacob Internet 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 Technology Portfolio with a short position of Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technology Portfolio and Jacob Internet.
Diversification Opportunities for Technology Portfolio and Jacob Internet
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Technology and Jacob is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Technology Portfolio Technolog and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet and Technology Portfolio 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 Technology Portfolio Technology are associated (or correlated) with Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Technology Portfolio i.e., Technology Portfolio and Jacob Internet go up and down completely randomly.
Pair Corralation between Technology Portfolio and Jacob Internet
Assuming the 90 days horizon Technology Portfolio Technology is expected to generate 0.76 times more return on investment than Jacob Internet. However, Technology Portfolio Technology is 1.31 times less risky than Jacob Internet. It trades about 0.16 of its potential returns per unit of risk. Jacob Internet Fund is currently generating about -0.03 per unit of risk. If you would invest 4,257 in Technology Portfolio Technology on July 26, 2025 and sell it today you would earn a total of 221.00 from holding Technology Portfolio Technology or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technology Portfolio Technolog vs. Jacob Internet Fund
Performance |
| Timeline |
| Technology Portfolio |
| Jacob Internet |
Technology Portfolio and Jacob Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technology Portfolio and Jacob Internet
The main advantage of trading using opposite Technology Portfolio and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technology Portfolio position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet's long position.| Technology Portfolio vs. Invesco American Franchise | Technology Portfolio vs. Us Small Cap | Technology Portfolio vs. Wcm Focused International | Technology Portfolio vs. Us Small Cap |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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