Correlation Between Jubilee Life and JS Global

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

By analyzing existing cross correlation between Jubilee Life Insurance and JS Global Banking, you can compare the effects of market volatilities on Jubilee Life and JS 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 Jubilee Life with a short position of JS Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Life and JS Global.

Diversification Opportunities for Jubilee Life and JS Global

0.05

Correlation Coefficient

Jubilee Life  JS Global

Significant diversification

The 3 months correlation between Jubilee and JSGBETF is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Life Insurance and JS Global Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Global Banking and Jubilee Life 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 Jubilee Life Insurance are associated (or correlated) with JS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Global Banking has no effect on the direction of Jubilee Life i.e., Jubilee Life and JS Global go up and down completely randomly.

Pair Corralation between Jubilee Life and JS Global

Assuming the 90 days trading horizon Jubilee Life Insurance is expected to under-perform the JS Global. But the stock apears to be less risky and, when comparing its historical volatility, Jubilee Life Insurance is 1.3 times less risky than JS Global. The stock trades about -0.1 of its potential returns per unit of risk. The JS Global Banking is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  2,259  in JS Global Banking on December 5, 2024 and sell it today you would lose (275.00) from holding JS Global Banking or give up 12.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Jubilee Life Insurance  vs.  JS Global Banking

Jubilee Life Insurance

Risk-Adjusted Performance

Very Weak

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

JS Global Banking

Risk-Adjusted Performance

Very Weak

Over the last 90 days JS Global Banking has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Jubilee Life and JS Global

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

The idea behind Jubilee Life Insurance and JS Global Banking 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.