Correlation Between ABSOLUTE CLEAN and JD Food
Can any of the company-specific risk be diversified away by investing in both ABSOLUTE CLEAN and JD Food 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 ABSOLUTE CLEAN and JD Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABSOLUTE CLEAN ENERGY and JD Food PCL, you can compare the effects of market volatilities on ABSOLUTE CLEAN and JD Food 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 ABSOLUTE CLEAN with a short position of JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSOLUTE CLEAN and JD Food.
Diversification Opportunities for ABSOLUTE CLEAN and JD Food
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between ABSOLUTE and JDF is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ABSOLUTE CLEAN ENERGY and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL and ABSOLUTE CLEAN 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 ABSOLUTE CLEAN ENERGY are associated (or correlated) with JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of ABSOLUTE CLEAN i.e., ABSOLUTE CLEAN and JD Food go up and down completely randomly.
Pair Corralation between ABSOLUTE CLEAN and JD Food
Assuming the 90 days trading horizon ABSOLUTE CLEAN ENERGY is expected to under-perform the JD Food. In addition to that, ABSOLUTE CLEAN is 1.02 times more volatile than JD Food PCL. It trades about -0.08 of its total potential returns per unit of risk. JD Food PCL is currently generating about -0.01 per unit of volatility. If you would invest 233.00 in JD Food PCL on August 25, 2024 and sell it today you would lose (23.00) from holding JD Food PCL or give up 9.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABSOLUTE CLEAN ENERGY vs. JD Food PCL
Performance |
| Timeline |
| ABSOLUTE CLEAN ENERGY |
| JD Food PCL |
ABSOLUTE CLEAN and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSOLUTE CLEAN and JD Food
The main advantage of trading using opposite ABSOLUTE CLEAN and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSOLUTE CLEAN position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food's long position.| ABSOLUTE CLEAN vs. BCPG Public | ABSOLUTE CLEAN vs. CK Power Public | ABSOLUTE CLEAN vs. TPI Polene Power | ABSOLUTE CLEAN vs. Earth Tech Environment |
| JD Food vs. Chamni Eye PCL | JD Food vs. Siam Global House | JD Food vs. The Erawan Group | JD Food vs. Ditto Public |
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.
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