Correlation Between JBDI Holdings and Sapiens International

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Can any of the company-specific risk be diversified away by investing in both JBDI Holdings and Sapiens International 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 Sapiens International 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 Sapiens International, you can compare the effects of market volatilities on JBDI Holdings and Sapiens International 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 Sapiens International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBDI Holdings and Sapiens International.

Diversification Opportunities for JBDI Holdings and Sapiens International

JBDISapiensDiversified AwayJBDISapiensDiversified Away100%
0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between JBDI and Sapiens is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding JBDI Holdings Limited and Sapiens International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapiens International 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 Sapiens International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapiens International has no effect on the direction of JBDI Holdings i.e., JBDI Holdings and Sapiens International go up and down completely randomly.

Pair Corralation between JBDI Holdings and Sapiens International

Given the investment horizon of 90 days JBDI Holdings Limited is expected to generate 4.75 times more return on investment than Sapiens International. However, JBDI Holdings is 4.75 times more volatile than Sapiens International. It trades about 0.05 of its potential returns per unit of risk. Sapiens International is currently generating about -0.07 per unit of risk. If you would invest  69.00  in JBDI Holdings Limited on November 15, 2024 and sell it today you would earn a total of  4.00  from holding JBDI Holdings Limited or generate 5.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

JBDI Holdings Limited  vs.  Sapiens International

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -30-20-100
JavaScript chart by amCharts 3.21.15JBDI SPNS
       Timeline  
JBDI Holdings Limited 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in JBDI Holdings Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly sluggish fundamental indicators, JBDI Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.550.60.650.70.750.80.850.9
Sapiens International 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Sapiens International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sapiens International is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2526272829

JBDI Holdings and Sapiens International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.68-8.0-5.32-2.64-0.04472.535.157.7710.3913.01 0.0100.0150.0200.0250.030
JavaScript chart by amCharts 3.21.15JBDI SPNS
       Returns  

Pair Trading with JBDI Holdings and Sapiens International

The main advantage of trading using opposite JBDI Holdings and Sapiens International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBDI Holdings position performs unexpectedly, Sapiens International 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 Sapiens International will offset losses from the drop in Sapiens International's long position.
The idea behind JBDI Holdings Limited and Sapiens International 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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