Correlation Between Jubilee Life and Grays Leasing
Can any of the company-specific risk be diversified away by investing in both Jubilee Life and Grays Leasing 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 Jubilee Life and Grays Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jubilee Life Insurance and Grays Leasing, you can compare the effects of market volatilities on Jubilee Life and Grays Leasing 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 Jubilee Life with a short position of Grays Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Life and Grays Leasing.
Diversification Opportunities for Jubilee Life and Grays Leasing
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jubilee and Grays is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Life Insurance and Grays Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grays Leasing and Jubilee Life 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 Jubilee Life Insurance are associated (or correlated) with Grays Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grays Leasing has no effect on the direction of Jubilee Life i.e., Jubilee Life and Grays Leasing go up and down completely randomly.
Pair Corralation between Jubilee Life and Grays Leasing
Assuming the 90 days trading horizon Jubilee Life is expected to generate 2.35 times less return on investment than Grays Leasing. But when comparing it to its historical volatility, Jubilee Life Insurance is 2.65 times less risky than Grays Leasing. It trades about 0.07 of its potential returns per unit of risk. Grays Leasing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 310.00 in Grays Leasing on August 31, 2024 and sell it today you would earn a total of 132.00 from holding Grays Leasing or generate 42.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.11% |
| Values | Daily Returns |
Jubilee Life Insurance vs. Grays Leasing
Performance |
| Timeline |
| Jubilee Life Insurance |
| Grays Leasing |
Jubilee Life and Grays Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilee Life and Grays Leasing
The main advantage of trading using opposite Jubilee Life and Grays Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilee Life position performs unexpectedly, Grays Leasing 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 Grays Leasing will offset losses from the drop in Grays Leasing's long position.| Jubilee Life vs. Pakistan Aluminium Beverage | Jubilee Life vs. Nimir Industrial Chemical | Jubilee Life vs. Ittehad Chemicals | Jubilee Life vs. Big Bird Foods |
| Grays Leasing vs. Masood Textile Mills | Grays Leasing vs. Fauji Foods | Grays Leasing vs. KSB Pumps | Grays Leasing vs. Mari Petroleum |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |