Correlation Between JAKS Resources and AirAsia X
Can any of the company-specific risk be diversified away by investing in both JAKS Resources and AirAsia X 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 AirAsia X 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 AirAsia X Bhd, you can compare the effects of market volatilities on JAKS Resources and AirAsia X 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 AirAsia X. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKS Resources and AirAsia X.
Diversification Opportunities for JAKS Resources and AirAsia X
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JAKS and AirAsia is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding JAKS Resources Bhd and AirAsia X Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirAsia X 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 AirAsia X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirAsia X Bhd has no effect on the direction of JAKS Resources i.e., JAKS Resources and AirAsia X go up and down completely randomly.
Pair Corralation between JAKS Resources and AirAsia X
Assuming the 90 days trading horizon JAKS Resources Bhd is expected to under-perform the AirAsia X. In addition to that, JAKS Resources is 2.35 times more volatile than AirAsia X Bhd. It trades about -0.04 of its total potential returns per unit of risk. AirAsia X Bhd is currently generating about 0.0 per unit of volatility. If you would invest 190.00 in AirAsia X Bhd on September 16, 2024 and sell it today you would lose (1.00) from holding AirAsia X Bhd or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKS Resources Bhd vs. AirAsia X Bhd
Performance |
| Timeline |
| JAKS Resources Bhd |
| AirAsia X Bhd |
JAKS Resources and AirAsia X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKS Resources and AirAsia X
The main advantage of trading using opposite JAKS Resources and AirAsia X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKS Resources position performs unexpectedly, AirAsia X 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 AirAsia X will offset losses from the drop in AirAsia X's long position.| JAKS Resources vs. MI Technovation Bhd | JAKS Resources vs. Sapura Industrial Bhd | JAKS Resources vs. Diversified Gateway Solutions | JAKS Resources vs. Southern Steel Bhd |
| AirAsia X vs. Public Packages Holdings | AirAsia X vs. Binasat Communications Bhd | AirAsia X vs. Awanbiru Technology Bhd | AirAsia X vs. Sports Toto Berhad |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |