Correlation Between Aurelius Technologies and JAKS Resources
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies 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 Aurelius Technologies and JAKS Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelius Technologies Bhd and JAKS Resources Bhd, you can compare the effects of market volatilities on Aurelius Technologies 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 Aurelius Technologies with a short position of JAKS Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and JAKS Resources.
Diversification Opportunities for Aurelius Technologies and JAKS Resources
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurelius and JAKS is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd 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 Aurelius Technologies 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 Aurelius Technologies Bhd 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 Aurelius Technologies i.e., Aurelius Technologies and JAKS Resources go up and down completely randomly.
Pair Corralation between Aurelius Technologies and JAKS Resources
Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to generate 0.4 times more return on investment than JAKS Resources. However, Aurelius Technologies Bhd is 2.49 times less risky than JAKS Resources. It trades about -0.04 of its potential returns per unit of risk. JAKS Resources Bhd is currently generating about -0.08 per unit of risk. If you would invest 338.00 in Aurelius Technologies Bhd on October 24, 2024 and sell it today you would lose (5.00) from holding Aurelius Technologies Bhd or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. JAKS Resources Bhd
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| JAKS Resources Bhd |
Aurelius Technologies and JAKS Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and JAKS Resources
The main advantage of trading using opposite Aurelius Technologies and JAKS Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies 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.| Aurelius Technologies vs. Resintech Bhd | Aurelius Technologies vs. Uchi Technologies Bhd | Aurelius Technologies vs. Berjaya Food Bhd | Aurelius Technologies vs. Dufu Tech Corp |
| JAKS Resources vs. Nova Wellness Group | JAKS Resources vs. Steel Hawk Berhad | JAKS Resources vs. DC HEALTHCARE HOLDINGS | JAKS Resources 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |