Correlation Between AAPICO Hitech and Jasmine Telecom
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and Jasmine Telecom 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 AAPICO Hitech and Jasmine Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAPICO Hitech Public and Jasmine Telecom Systems, you can compare the effects of market volatilities on AAPICO Hitech and Jasmine Telecom 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 AAPICO Hitech with a short position of Jasmine Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and Jasmine Telecom.
Diversification Opportunities for AAPICO Hitech and Jasmine Telecom
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AAPICO and Jasmine is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and Jasmine Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine Telecom Systems and AAPICO Hitech 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 AAPICO Hitech Public are associated (or correlated) with Jasmine Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine Telecom Systems has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and Jasmine Telecom go up and down completely randomly.
Pair Corralation between AAPICO Hitech and Jasmine Telecom
Assuming the 90 days horizon AAPICO Hitech Public is expected to under-perform the Jasmine Telecom. But the stock apears to be less risky and, when comparing its historical volatility, AAPICO Hitech Public is 1.16 times less risky than Jasmine Telecom. The stock trades about -0.28 of its potential returns per unit of risk. The Jasmine Telecom Systems is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 6,700 in Jasmine Telecom Systems on October 26, 2024 and sell it today you would lose (500.00) from holding Jasmine Telecom Systems or give up 7.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAPICO Hitech Public vs. Jasmine Telecom Systems
Performance |
| Timeline |
| AAPICO Hitech Public |
| Jasmine Telecom Systems |
AAPICO Hitech and Jasmine Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and Jasmine Telecom
The main advantage of trading using opposite AAPICO Hitech and Jasmine Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, Jasmine Telecom 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 Jasmine Telecom will offset losses from the drop in Jasmine Telecom's long position.| AAPICO Hitech vs. Jasmine Telecom Systems | AAPICO Hitech vs. RB Food Supply | AAPICO Hitech vs. Jasmine Broadband Internet | AAPICO Hitech vs. Kiattana Transport Public |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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