Correlation Between JS Global and JS Investments
Specify exactly 2 symbols:
By analyzing existing cross correlation between JS Global Banking and JS Investments, you can compare the effects of market volatilities on JS Global and JS Investments 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 JS Global with a short position of JS Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of JS Global and JS Investments.
Diversification Opportunities for JS Global and JS Investments
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JSGBETF and JSIL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JS Global Banking and JS Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Investments and JS Global 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 JS Global Banking are associated (or correlated) with JS Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Investments has no effect on the direction of JS Global i.e., JS Global and JS Investments go up and down completely randomly.
Pair Corralation between JS Global and JS Investments
Assuming the 90 days trading horizon JS Global Banking is expected to generate 1.12 times more return on investment than JS Investments. However, JS Global is 1.12 times more volatile than JS Investments. It trades about 0.2 of its potential returns per unit of risk. JS Investments is currently generating about 0.16 per unit of risk. If you would invest 1,867 in JS Global Banking on September 14, 2024 and sell it today you would earn a total of 317.00 from holding JS Global Banking or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JS Global Banking vs. JS Investments
Performance |
| Timeline |
| JS Global Banking |
| JS Investments |
JS Global and JS Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JS Global and JS Investments
The main advantage of trading using opposite JS Global and JS Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JS Global position performs unexpectedly, JS Investments 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 JS Investments will offset losses from the drop in JS Investments' long position.| JS Global vs. Habib Insurance | JS Global vs. Ghandhara Automobile | JS Global vs. Century Insurance | JS Global vs. Reliance Weaving Mills |
| JS Investments vs. Masood Textile Mills | JS Investments vs. Fauji Foods | JS Investments vs. KSB Pumps | JS Investments 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |