Correlation Between Amanah Leasing and JMT Network
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing and JMT Network 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 Amanah Leasing and JMT Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amanah Leasing Public and JMT Network Services, you can compare the effects of market volatilities on Amanah Leasing and JMT Network 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 Amanah Leasing with a short position of JMT Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and JMT Network.
Diversification Opportunities for Amanah Leasing and JMT Network
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amanah and JMT is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public and JMT Network Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JMT Network Services and Amanah Leasing 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 Amanah Leasing Public are associated (or correlated) with JMT Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JMT Network Services has no effect on the direction of Amanah Leasing i.e., Amanah Leasing and JMT Network go up and down completely randomly.
Pair Corralation between Amanah Leasing and JMT Network
Assuming the 90 days trading horizon Amanah Leasing Public is expected to generate 13.79 times more return on investment than JMT Network. However, Amanah Leasing is 13.79 times more volatile than JMT Network Services. It trades about 0.05 of its potential returns per unit of risk. JMT Network Services is currently generating about -0.03 per unit of risk. If you would invest 226.00 in Amanah Leasing Public on August 28, 2024 and sell it today you would lose (122.00) from holding Amanah Leasing Public or give up 53.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanah Leasing Public vs. JMT Network Services
Performance |
| Timeline |
| Amanah Leasing Public |
| JMT Network Services |
Amanah Leasing and JMT Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and JMT Network
The main advantage of trading using opposite Amanah Leasing and JMT Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing position performs unexpectedly, JMT Network 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 JMT Network will offset losses from the drop in JMT Network's long position.| Amanah Leasing vs. Srisawad Power 1979 | Amanah Leasing vs. JMT Network Services | Amanah Leasing vs. AEON Thana Sinsap | Amanah Leasing vs. Ratchthani Leasing Public |
| JMT Network vs. Jay Mart Public | JMT Network vs. Com7 PCL | JMT Network vs. KCE Electronics Public | JMT Network vs. Muangthai Capital 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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