Correlation Between Impiana Hotels and JAKS Resources
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels 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 Impiana Hotels and JAKS Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impiana Hotels Bhd and JAKS Resources Bhd, you can compare the effects of market volatilities on Impiana Hotels 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 Impiana Hotels with a short position of JAKS Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and JAKS Resources.
Diversification Opportunities for Impiana Hotels and JAKS Resources
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impiana and JAKS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels 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 Impiana Hotels 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 Impiana Hotels 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 Impiana Hotels i.e., Impiana Hotels and JAKS Resources go up and down completely randomly.
Pair Corralation between Impiana Hotels and JAKS Resources
Assuming the 90 days trading horizon Impiana Hotels Bhd is expected to generate 1.34 times more return on investment than JAKS Resources. However, Impiana Hotels is 1.34 times more volatile than JAKS Resources Bhd. It trades about 0.06 of its potential returns per unit of risk. JAKS Resources Bhd is currently generating about -0.02 per unit of risk. If you would invest 9.00 in Impiana Hotels Bhd on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Impiana Hotels Bhd or generate 144.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. JAKS Resources Bhd
Performance |
| Timeline |
| Impiana Hotels Bhd |
| JAKS Resources Bhd |
Impiana Hotels and JAKS Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and JAKS Resources
The main advantage of trading using opposite Impiana Hotels and JAKS Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels 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.| Impiana Hotels vs. Computer Forms Bhd | Impiana Hotels vs. KPJ Healthcare Bhd | Impiana Hotels vs. Awanbiru Technology Bhd | Impiana Hotels vs. Tex Cycle Technology |
| JAKS Resources vs. Impiana Hotels Bhd | JAKS Resources vs. Computer Forms Bhd | JAKS Resources vs. Carlsberg Brewery Malaysia | JAKS Resources vs. Shangri La Hotels |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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