Correlation Between AP Public and Jay Mart
Can any of the company-specific risk be diversified away by investing in both AP Public and Jay Mart 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 AP Public and Jay Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and Jay Mart Public, you can compare the effects of market volatilities on AP Public and Jay Mart 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 AP Public with a short position of Jay Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Jay Mart.
Diversification Opportunities for AP Public and Jay Mart
Very weak diversification
The 3 months correlation between AP Public and Jay is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Jay Mart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jay Mart Public and AP Public 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 AP Public are associated (or correlated) with Jay Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jay Mart Public has no effect on the direction of AP Public i.e., AP Public and Jay Mart go up and down completely randomly.
Pair Corralation between AP Public and Jay Mart
Assuming the 90 days horizon AP Public is expected to generate 0.66 times more return on investment than Jay Mart. However, AP Public is 1.51 times less risky than Jay Mart. It trades about -0.19 of its potential returns per unit of risk. Jay Mart Public is currently generating about -0.29 per unit of risk. If you would invest 935.00 in AP Public on August 29, 2024 and sell it today you would lose (65.00) from holding AP Public or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Jay Mart Public
Performance |
| Timeline |
| AP Public |
| Jay Mart Public |
AP Public and Jay Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Jay Mart
The main advantage of trading using opposite AP Public and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Jay Mart 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 Jay Mart will offset losses from the drop in Jay Mart's long position.| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
| Jay Mart vs. AP Public | Jay Mart vs. Jasmine International Public | Jay Mart vs. Asia Plus Group | Jay Mart vs. Bangchak 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance |