Correlation Between JKN Global and Rojana Industrial

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

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

Diversification Opportunities for JKN Global and Rojana Industrial

0.0

Correlation Coefficient

JKN Global  Rojana Industrial

Pay attention - limited upside

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

Pair Corralation between JKN Global and Rojana Industrial

If you would invest  31.00  in JKN Global Media on December 21, 2024 and sell it today you would earn a total of  0.00  from holding JKN Global Media or generate 0.0% return on investment over 90 days.

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

JKN Global Media  vs.  Rojana Industrial Park

JKN Global Media

Risk-Adjusted Performance

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 quite persistent basic indicators, JKN Global is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Rojana Industrial Park

Risk-Adjusted Performance

Very Weak

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

Pair Trading with JKN Global and Rojana Industrial

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

The idea behind JKN Global Media and Rojana Industrial Park 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.