Correlation Between Com7 PCL and JKN Global

Can any of the company-specific risk be diversified away by investing in both Com7 PCL and JKN 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 Com7 PCL and JKN Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Com7 PCL and JKN Global Media, you can compare the effects of market volatilities on Com7 PCL and JKN 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 Com7 PCL with a short position of JKN Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and JKN Global.

Diversification Opportunities for Com7 PCL and JKN Global

0.11

Correlation Coefficient

Com7 PCL  JKN Global

Average diversification

The 3 months correlation between Com7 and JKN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and JKN Global Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JKN Global Media and Com7 PCL 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 Com7 PCL are associated (or correlated) with JKN Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JKN Global Media has no effect on the direction of Com7 PCL i.e., Com7 PCL and JKN Global go up and down completely randomly.

Pair Corralation between Com7 PCL and JKN Global

If you would invest  31.00  in JKN Global Media on September 15, 2024 and sell it today you would earn a total of  0.00  from holding JKN Global Media or generate 0.0% return on investment over 90 days.

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

Com7 PCL  vs.  JKN Global Media

Com7 PCL

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Com7 PCL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Com7 PCL may actually be approaching a critical reversion point that can send shares even higher in January 2025.

JKN Global Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JKN Global Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, JKN Global is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Com7 PCL and JKN Global

The main advantage of trading using opposite Com7 PCL and JKN Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, JKN 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 JKN Global will offset losses from the drop in JKN Global's long position.

The idea behind Com7 PCL and JKN Global Media 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .