Correlation Between JS Investments and Grays Leasing
Can any of the company-specific risk be diversified away by investing in both JS Investments and Grays Leasing 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 JS Investments and Grays Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JS Investments and Grays Leasing, you can compare the effects of market volatilities on JS Investments and Grays Leasing 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 JS Investments with a short position of Grays Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of JS Investments and Grays Leasing.
Diversification Opportunities for JS Investments and Grays Leasing
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between JSIL and Grays is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding JS Investments and Grays Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grays Leasing and JS Investments 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 JS Investments are associated (or correlated) with Grays Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grays Leasing has no effect on the direction of JS Investments i.e., JS Investments and Grays Leasing go up and down completely randomly.
Pair Corralation between JS Investments and Grays Leasing
Assuming the 90 days trading horizon JS Investments is expected to generate 0.82 times more return on investment than Grays Leasing. However, JS Investments is 1.21 times less risky than Grays Leasing. It trades about -0.01 of its potential returns per unit of risk. Grays Leasing is currently generating about -0.01 per unit of risk. If you would invest 2,450 in JS Investments on December 1, 2024 and sell it today you would lose (151.00) from holding JS Investments or give up 6.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 96.61% |
Values | Daily Returns |
JS Investments vs. Grays Leasing
Performance |
Timeline |
JS Investments |
Grays Leasing |
JS Investments and Grays Leasing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JS Investments and Grays Leasing
The main advantage of trading using opposite JS Investments and Grays Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JS Investments position performs unexpectedly, Grays Leasing 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 Grays Leasing will offset losses from the drop in Grays Leasing's long position.JS Investments vs. Fauji Foods | JS Investments vs. Hi Tech Lubricants | JS Investments vs. AKD Hospitality | JS Investments vs. Pakistan Telecommunication |
Grays Leasing vs. MCB Investment Manag | Grays Leasing vs. Ghandhara Automobile | Grays Leasing vs. Unilever Pakistan Foods | Grays Leasing vs. Pakistan Telecommunication |
Check out your portfolio center.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |