Correlation Between SFS REAL and JAIZ BANK

Can any of the company-specific risk be diversified away by investing in both SFS REAL and JAIZ BANK 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 SFS REAL and JAIZ BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SFS REAL ESTATE and JAIZ BANK PLC, you can compare the effects of market volatilities on SFS REAL and JAIZ BANK 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 SFS REAL with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFS REAL and JAIZ BANK.

Diversification Opportunities for SFS REAL and JAIZ BANK

0.0

Correlation Coefficient

SFS REAL  JAIZ BANK

Pay attention - limited upside

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

Pair Corralation between SFS REAL and JAIZ BANK

If you would invest  237.00  in JAIZ BANK PLC on October 25, 2024 and sell it today you would earn a total of  63.00  from holding JAIZ BANK PLC or generate 26.58% return on investment over 90 days.

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

SFS REAL ESTATE  vs.  JAIZ BANK PLC

SFS REAL ESTATE

Risk-Adjusted Performance

0 of 100

Very Weak

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

JAIZ BANK PLC

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JAIZ BANK PLC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, JAIZ BANK displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SFS REAL and JAIZ BANK

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

The idea behind SFS REAL ESTATE and JAIZ BANK PLC 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.