Correlation Between Jb Financial and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Kisan Telecom 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 Jb Financial and Kisan Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Kisan Telecom Co, you can compare the effects of market volatilities on Jb Financial and Kisan Telecom 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 Jb Financial with a short position of Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Kisan Telecom.
Diversification Opportunities for Jb Financial and Kisan Telecom
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between 175330 and Kisan is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom and Jb Financial 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 Jb Financial are associated (or correlated) with Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of Jb Financial i.e., Jb Financial and Kisan Telecom go up and down completely randomly.
Pair Corralation between Jb Financial and Kisan Telecom
Assuming the 90 days trading horizon Jb Financial is expected to under-perform the Kisan Telecom. In addition to that, Jb Financial is 1.75 times more volatile than Kisan Telecom Co. It trades about -0.01 of its total potential returns per unit of risk. Kisan Telecom Co is currently generating about 0.04 per unit of volatility. If you would invest 177,000 in Kisan Telecom Co on October 30, 2024 and sell it today you would earn a total of 3,000 from holding Kisan Telecom Co or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Kisan Telecom Co
Performance |
| Timeline |
| Jb Financial |
| Kisan Telecom |
Jb Financial and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Kisan Telecom
The main advantage of trading using opposite Jb Financial and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| Jb Financial vs. Dongbu Insurance Co | Jb Financial vs. Shinhan Financial Group | Jb Financial vs. Cloud Air CoLtd | Jb Financial vs. Dgb Financial |
| Kisan Telecom vs. SV Investment | Kisan Telecom vs. DB Financial Investment | Kisan Telecom vs. Golden Bridge Investment | Kisan Telecom vs. Coloray International Investment |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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