Correlation Between Carlsberg Brewery and JAKS Resources
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and JAKS Resources 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 Carlsberg Brewery and JAKS Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg Brewery Malaysia and JAKS Resources Bhd, you can compare the effects of market volatilities on Carlsberg Brewery and JAKS Resources 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 Carlsberg Brewery with a short position of JAKS Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and JAKS Resources.
Diversification Opportunities for Carlsberg Brewery and JAKS Resources
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and JAKS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and JAKS Resources Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAKS Resources Bhd and Carlsberg Brewery 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 Carlsberg Brewery Malaysia are associated (or correlated) with JAKS Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAKS Resources Bhd has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and JAKS Resources go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and JAKS Resources
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to generate 0.22 times more return on investment than JAKS Resources. However, Carlsberg Brewery Malaysia is 4.61 times less risky than JAKS Resources. It trades about 0.07 of its potential returns per unit of risk. JAKS Resources Bhd is currently generating about -0.01 per unit of risk. If you would invest 1,837 in Carlsberg Brewery Malaysia on September 3, 2024 and sell it today you would earn a total of 273.00 from holding Carlsberg Brewery Malaysia or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. JAKS Resources Bhd
Performance |
| Timeline |
| Carlsberg Brewery |
| JAKS Resources Bhd |
Carlsberg Brewery and JAKS Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and JAKS Resources
The main advantage of trading using opposite Carlsberg Brewery and JAKS Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, JAKS Resources 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 JAKS Resources will offset losses from the drop in JAKS Resources' long position.| Carlsberg Brewery vs. Apex Healthcare Bhd | Carlsberg Brewery vs. Alliance Financial Group | Carlsberg Brewery vs. Al Aqar Healthcare | Carlsberg Brewery vs. Silver Ridge Holdings |
| JAKS Resources vs. Berjaya Food Bhd | JAKS Resources vs. Public Packages Holdings | JAKS Resources vs. Mycron Steel Bhd | JAKS Resources vs. YX Precious Metals |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |