Correlation Between Jasmine International and JKN Global

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

By analyzing existing cross correlation between Jasmine International Public and JKN Global Media, you can compare the effects of market volatilities on Jasmine International and JKN Global 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 Jasmine International with a short position of JKN Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and JKN Global.

Diversification Opportunities for Jasmine International and JKN Global

0.04

Correlation Coefficient

Jasmine International  JKN Global

Significant diversification

The 3 months correlation between Jasmine and JKN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and JKN Global Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JKN Global Media and Jasmine International 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 Jasmine International Public are associated (or correlated) with JKN Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JKN Global Media has no effect on the direction of Jasmine International i.e., Jasmine International and JKN Global go up and down completely randomly.

Pair Corralation between Jasmine International and JKN Global

Assuming the 90 days trading horizon Jasmine International is expected to generate 37.66 times less return on investment than JKN Global. But when comparing it to its historical volatility, Jasmine International Public is 15.87 times less risky than JKN Global. It trades about 0.02 of its potential returns per unit of risk. JKN Global Media is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  51.00  in JKN Global Media on September 4, 2024 and sell it today you would lose (20.00) from holding JKN Global Media or give up 39.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jasmine International Public  vs.  JKN Global Media

Jasmine International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jasmine International Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

JKN Global Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JKN Global Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Jasmine International and JKN Global

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

The idea behind Jasmine International Public and JKN Global Media 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.