Correlation Between JAIZ BANK and AXAMANSARD INSURANCE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JAIZ BANK and AXAMANSARD INSURANCE 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 JAIZ BANK and AXAMANSARD INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAIZ BANK PLC and AXAMANSARD INSURANCE PLC, you can compare the effects of market volatilities on JAIZ BANK and AXAMANSARD INSURANCE 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 JAIZ BANK with a short position of AXAMANSARD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and AXAMANSARD INSURANCE.

Diversification Opportunities for JAIZ BANK and AXAMANSARD INSURANCE

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between JAIZ and AXAMANSARD is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and AXAMANSARD INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXAMANSARD INSURANCE PLC and JAIZ BANK 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 JAIZ BANK PLC are associated (or correlated) with AXAMANSARD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXAMANSARD INSURANCE PLC has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and AXAMANSARD INSURANCE go up and down completely randomly.

Pair Corralation between JAIZ BANK and AXAMANSARD INSURANCE

Assuming the 90 days trading horizon JAIZ BANK is expected to generate 1.2 times less return on investment than AXAMANSARD INSURANCE. In addition to that, JAIZ BANK is 1.18 times more volatile than AXAMANSARD INSURANCE PLC. It trades about 0.05 of its total potential returns per unit of risk. AXAMANSARD INSURANCE PLC is currently generating about 0.07 per unit of volatility. If you would invest  413.00  in AXAMANSARD INSURANCE PLC on March 23, 2025 and sell it today you would earn a total of  557.00  from holding AXAMANSARD INSURANCE PLC or generate 134.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

JAIZ BANK PLC  vs.  AXAMANSARD INSURANCE PLC

 Performance 
       Timeline  
JAIZ BANK PLC 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days JAIZ BANK PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, JAIZ BANK is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
AXAMANSARD INSURANCE PLC 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AXAMANSARD INSURANCE PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, AXAMANSARD INSURANCE exhibited solid returns over the last few months and may actually be approaching a breakup point.

JAIZ BANK and AXAMANSARD INSURANCE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JAIZ BANK and AXAMANSARD INSURANCE

The main advantage of trading using opposite JAIZ BANK and AXAMANSARD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE will offset losses from the drop in AXAMANSARD INSURANCE's long position.
The idea behind JAIZ BANK PLC and AXAMANSARD INSURANCE 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.
Check out your portfolio center.
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.