Correlation Between Jb Financial and IQuest

Can any of the company-specific risk be diversified away by investing in both Jb Financial and IQuest 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 Jb Financial and IQuest into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jb Financial and IQuest Co, you can compare the effects of market volatilities on Jb Financial and IQuest 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 Jb Financial with a short position of IQuest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and IQuest.

Diversification Opportunities for Jb Financial and IQuest

0.0

Correlation Coefficient

Jb Financial  IQuest

Pay attention - limited upside

The 3 months correlation between 175330 and IQuest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and IQuest Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQuest and Jb Financial 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 Jb Financial are associated (or correlated) with IQuest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQuest has no effect on the direction of Jb Financial i.e., Jb Financial and IQuest go up and down completely randomly.

Pair Corralation between Jb Financial and IQuest

If you would invest  1,827,000  in Jb Financial on October 26, 2024 and sell it today you would earn a total of  114,000  from holding Jb Financial or generate 6.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Jb Financial  vs.  IQuest Co

Jb Financial

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jb Financial are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jb Financial may actually be approaching a critical reversion point that can send shares even higher in February 2025.

IQuest

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days IQuest Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, IQuest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jb Financial and IQuest

The main advantage of trading using opposite Jb Financial and IQuest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, IQuest 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 IQuest will offset losses from the drop in IQuest's long position.

The idea behind Jb Financial and IQuest Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.