Correlation Between JXJT Old and Jerash Holdings

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

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

Diversification Opportunities for JXJT Old and Jerash Holdings

0.0

Correlation Coefficient

JXJT Old  Jerash Holdings

Pay attention - limited upside

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

Pair Corralation between JXJT Old and Jerash Holdings

If you would invest  339.00  in Jerash Holdings on December 28, 2024 and sell it today you would earn a total of  10.00  from holding Jerash Holdings or generate 2.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JXJT Old  vs.  Jerash Holdings

JXJT Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days JXJT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking indicators, JXJT Old is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Jerash Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jerash Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Jerash Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with JXJT Old and Jerash Holdings

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

The idea behind JXJT Old and Jerash Holdings 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.