Correlation Between Jubilee Life and Al Khair

Can any of the company-specific risk be diversified away by investing in both Jubilee Life and Al Khair 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 Al Khair 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 Al Khair Gadoon Limited, you can compare the effects of market volatilities on Jubilee Life and Al Khair 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 Al Khair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Life and Al Khair.

Diversification Opportunities for Jubilee Life and Al Khair

0.91

Correlation Coefficient

Jubilee Life  Al Khair

Almost no diversification

The 3 months correlation between Jubilee and AKGL is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Life Insurance and Al Khair Gadoon Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Khair Gadoon 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 Al Khair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Khair Gadoon has no effect on the direction of Jubilee Life i.e., Jubilee Life and Al Khair go up and down completely randomly.

Pair Corralation between Jubilee Life and Al Khair

Assuming the 90 days trading horizon Jubilee Life is expected to generate 1.08 times less return on investment than Al Khair. But when comparing it to its historical volatility, Jubilee Life Insurance is 1.19 times less risky than Al Khair. It trades about 0.2 of its potential returns per unit of risk. Al Khair Gadoon Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  4,890  in Al Khair Gadoon Limited on April 25, 2025 and sell it today you would earn a total of  1,460  from holding Al Khair Gadoon Limited or generate 29.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	80.0%
Values	Daily Returns

Jubilee Life Insurance  vs.  Al Khair Gadoon Limited

Jubilee Life Insurance

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jubilee Life Insurance are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, Jubilee Life disclosed solid returns over the last few months and may actually be approaching a breakup point.

Al Khair Gadoon

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Al Khair Gadoon Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Al Khair sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jubilee Life and Al Khair

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

The idea behind Jubilee Life Insurance and Al Khair Gadoon Limited 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.