Correlation Between JBDI Holdings and Shenzhen Genvict

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

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

Diversification Opportunities for JBDI Holdings and Shenzhen Genvict

-0.44

Correlation Coefficient

JBDI Holdings  Shenzhen Genvict

Very good diversification

The 3 months correlation between JBDI and Shenzhen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding JBDI Holdings Limited and Shenzhen Genvict Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Genvict Tec and JBDI Holdings 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 JBDI Holdings Limited are associated (or correlated) with Shenzhen Genvict. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Genvict Tec has no effect on the direction of JBDI Holdings i.e., JBDI Holdings and Shenzhen Genvict go up and down completely randomly.

Pair Corralation between JBDI Holdings and Shenzhen Genvict

Given the investment horizon of 90 days JBDI Holdings Limited is expected to under-perform the Shenzhen Genvict. In addition to that, JBDI Holdings is 1.6 times more volatile than Shenzhen Genvict Technologies. It trades about -0.13 of its total potential returns per unit of risk. Shenzhen Genvict Technologies is currently generating about 0.12 per unit of volatility. If you would invest  2,280  in Shenzhen Genvict Technologies on September 23, 2024 and sell it today you would earn a total of  673.00  from holding Shenzhen Genvict Technologies or generate 29.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.85%
Values	Daily Returns

JBDI Holdings Limited  vs.  Shenzhen Genvict Technologies

JBDI Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JBDI Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Shenzhen Genvict Tec

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shenzhen Genvict Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shenzhen Genvict sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JBDI Holdings and Shenzhen Genvict

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

The idea behind JBDI Holdings Limited and Shenzhen Genvict Technologies 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.