Correlation Between JS Investments and JS Global

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

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

Diversification Opportunities for JS Investments and JS Global

0.93

Correlation Coefficient

JS Investments  JS Global

Almost no diversification

The 3 months correlation between JSIL and JSGBETF is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding JS Investments 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 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 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 JS Investments i.e., JS Investments and JS Global go up and down completely randomly.

Pair Corralation between JS Investments and JS Global

Assuming the 90 days trading horizon JS Investments is expected to generate 1.1 times less return on investment than JS Global. But when comparing it to its historical volatility, JS Investments is 1.15 times less risky than JS Global. It trades about 0.18 of its potential returns per unit of risk. JS Global Banking is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,150  in JS Global Banking on April 23, 2025 and sell it today you would earn a total of  826.00  from holding JS Global Banking or generate 38.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	91.53%
Values	Daily Returns

JS Investments  vs.  JS Global Banking

JS Investments

Risk-Adjusted Performance

Good

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

JS Global Banking

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JS Global Banking are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting technical and fundamental indicators, JS Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JS Investments and JS Global

The main advantage of trading using opposite JS Investments and JS Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JS Investments 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 JS Investments 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.