Correlation Between JAKS Resources and Media Prima
Can any of the company-specific risk be diversified away by investing in both JAKS Resources and Media Prima 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 JAKS Resources and Media Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKS Resources Bhd and Media Prima Bhd, you can compare the effects of market volatilities on JAKS Resources and Media Prima 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 JAKS Resources with a short position of Media Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKS Resources and Media Prima.
Diversification Opportunities for JAKS Resources and Media Prima
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JAKS and Media is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding JAKS Resources Bhd and Media Prima Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Prima Bhd and JAKS Resources 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 JAKS Resources Bhd are associated (or correlated) with Media Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Prima Bhd has no effect on the direction of JAKS Resources i.e., JAKS Resources and Media Prima go up and down completely randomly.
Pair Corralation between JAKS Resources and Media Prima
Assuming the 90 days trading horizon JAKS Resources Bhd is expected to generate 8.63 times more return on investment than Media Prima. However, JAKS Resources is 8.63 times more volatile than Media Prima Bhd. It trades about 0.03 of its potential returns per unit of risk. Media Prima Bhd is currently generating about 0.0 per unit of risk. If you would invest 13.00 in JAKS Resources Bhd on September 14, 2024 and sell it today you would earn a total of 0.00 from holding JAKS Resources Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKS Resources Bhd vs. Media Prima Bhd
Performance |
| Timeline |
| JAKS Resources Bhd |
| Media Prima Bhd |
JAKS Resources and Media Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKS Resources and Media Prima
The main advantage of trading using opposite JAKS Resources and Media Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKS Resources position performs unexpectedly, Media Prima 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 Media Prima will offset losses from the drop in Media Prima's long position.| JAKS Resources vs. KPJ Healthcare Bhd | JAKS Resources vs. Sungei Bagan Rubber | JAKS Resources vs. Eversafe Rubber Bhd | JAKS Resources vs. Rubberex M |
| Media Prima vs. Star Media Group | Media Prima vs. Asia Media Group | Media Prima vs. Advance Information Marketing |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |