Correlation Between Al Khair and JS Bank

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

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

Diversification Opportunities for Al Khair and JS Bank

-0.13

Correlation Coefficient

Al Khair  JS Bank

Good diversification

The 3 months correlation between AKGL and JSBL is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Al Khair Gadoon Limited and JS Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Bank and Al Khair 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 Al Khair Gadoon Limited are associated (or correlated) with JS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Bank has no effect on the direction of Al Khair i.e., Al Khair and JS Bank go up and down completely randomly.

Pair Corralation between Al Khair and JS Bank

Assuming the 90 days trading horizon Al Khair Gadoon Limited is expected to under-perform the JS Bank. In addition to that, Al Khair is 1.29 times more volatile than JS Bank. It trades about -0.04 of its total potential returns per unit of risk. JS Bank is currently generating about 0.24 per unit of volatility. If you would invest  1,477  in JS Bank on July 10, 2025 and sell it today you would earn a total of  766.00  from holding JS Bank or generate 51.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.06%
Values	Daily Returns

Al Khair Gadoon Limited  vs.  JS Bank

Al Khair Gadoon

Risk-Adjusted Performance

Weakest

Over the last 90 days Al Khair Gadoon Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

JS Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JS Bank are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, JS Bank sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Al Khair and JS Bank

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

The idea behind Al Khair Gadoon Limited and JS Bank 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.