Correlation Between James Balanced and Nicholas
Can any of the company-specific risk be diversified away by investing in both James Balanced and Nicholas 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 James Balanced and Nicholas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Nicholas Ltd Edition, you can compare the effects of market volatilities on James Balanced and Nicholas 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 James Balanced with a short position of Nicholas. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Nicholas.
Diversification Opportunities for James Balanced and Nicholas
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between James and Nicholas is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Nicholas Ltd Edition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicholas Edition and James Balanced 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 James Balanced Golden are associated (or correlated) with Nicholas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicholas Edition has no effect on the direction of James Balanced i.e., James Balanced and Nicholas go up and down completely randomly.
Pair Corralation between James Balanced and Nicholas
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.34 times more return on investment than Nicholas. However, James Balanced Golden is 2.94 times less risky than Nicholas. It trades about 0.15 of its potential returns per unit of risk. Nicholas Ltd Edition is currently generating about -0.12 per unit of risk. If you would invest 2,364 in James Balanced Golden on August 13, 2025 and sell it today you would earn a total of 81.00 from holding James Balanced Golden or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Nicholas Ltd Edition
Performance |
| Timeline |
| James Balanced Golden |
| Nicholas Edition |
James Balanced and Nicholas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Nicholas
The main advantage of trading using opposite James Balanced and Nicholas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Nicholas 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 Nicholas will offset losses from the drop in Nicholas' long position.| James Balanced vs. Deutsche Equity 500 | James Balanced vs. Blackrock Muniassets Closed | James Balanced vs. Nicholas Ltd Edition | James Balanced vs. Marsico Growth Fund |
| Nicholas vs. Wasatch Micro Cap | Nicholas vs. James Balanced Golden | Nicholas vs. Fidelity Japan Smaller | Nicholas vs. Growth Fund Growth |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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