Correlation Between JBDI Holdings and Creative Global

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

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

Diversification Opportunities for JBDI Holdings and Creative Global

0.37

Correlation Coefficient

JBDI Holdings  Creative Global

Weak diversification

The 3 months correlation between JBDI and Creative is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding JBDI Holdings Limited and Creative Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Global Tech and JBDI Holdings 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 JBDI Holdings Limited are associated (or correlated) with Creative Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Global Tech has no effect on the direction of JBDI Holdings i.e., JBDI Holdings and Creative Global go up and down completely randomly.

Pair Corralation between JBDI Holdings and Creative Global

Given the investment horizon of 90 days JBDI Holdings Limited is expected to under-perform the Creative Global. But the stock apears to be less risky and, when comparing its historical volatility, JBDI Holdings Limited is 30.07 times less risky than Creative Global. The stock trades about -0.09 of its potential returns per unit of risk. The Creative Global Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Creative Global Technology on September 30, 2024 and sell it today you would earn a total of  769.00  from holding Creative Global Technology or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	37.5%
Values	Daily Returns

JBDI Holdings Limited  vs.  Creative Global Technology

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 abnormal performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Creative Global Tech

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Creative Global Technology are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Creative Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JBDI Holdings and Creative Global

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

The idea behind JBDI Holdings Limited and Creative Global Technology 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.