Correlation Between DSS and JBDI Holdings

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

By analyzing existing cross correlation between DSS Inc and JBDI Holdings Limited, you can compare the effects of market volatilities on DSS and JBDI Holdings 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 DSS with a short position of JBDI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSS and JBDI Holdings.

Diversification Opportunities for DSS and JBDI Holdings

0.8

Correlation Coefficient

DSS  JBDI Holdings

Very poor diversification

The 3 months correlation between DSS and JBDI is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and JBDI Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBDI Holdings Limited and DSS 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 DSS Inc are associated (or correlated) with JBDI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBDI Holdings Limited has no effect on the direction of DSS i.e., DSS and JBDI Holdings go up and down completely randomly.

Pair Corralation between DSS and JBDI Holdings

Considering the 90-day investment horizon DSS is expected to generate 4.29 times less return on investment than JBDI Holdings. But when comparing it to its historical volatility, DSS Inc is 1.36 times less risky than JBDI Holdings. It trades about 0.05 of its potential returns per unit of risk. JBDI Holdings Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  60.00  in JBDI Holdings Limited on October 15, 2024 and sell it today you would earn a total of  10.70  from holding JBDI Holdings Limited or generate 17.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	94.74%
Values	Daily Returns

DSS Inc  vs.  JBDI Holdings Limited

DSS Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DSS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

JBDI Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JBDI Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with DSS and JBDI Holdings

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

The idea behind DSS Inc and JBDI Holdings Limited 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.