Correlation Between CI Group and Jay Mart
Can any of the company-specific risk be diversified away by investing in both CI Group 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 CI Group and Jay Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Group Public and Jay Mart Public, you can compare the effects of market volatilities on CI Group 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 CI Group with a short position of Jay Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Group and Jay Mart.
Diversification Opportunities for CI Group and Jay Mart
Good diversification
The 3 months correlation between CIG and Jay is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CI Group 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 CI Group 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 CI Group 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 CI Group i.e., CI Group and Jay Mart go up and down completely randomly.
Pair Corralation between CI Group and Jay Mart
Assuming the 90 days trading horizon CI Group Public is expected to generate 19.22 times more return on investment than Jay Mart. However, CI Group is 19.22 times more volatile than Jay Mart Public. It trades about 0.09 of its potential returns per unit of risk. Jay Mart Public is currently generating about 0.04 per unit of risk. If you would invest 7.00 in CI Group Public on August 29, 2024 and sell it today you would lose (2.00) from holding CI Group Public or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Group Public vs. Jay Mart Public
Performance |
| Timeline |
| CI Group Public |
| Jay Mart Public |
CI Group and Jay Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Group and Jay Mart
The main advantage of trading using opposite CI Group and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Group 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.| CI Group vs. ASIA Capital Group | CI Group vs. Cho Thavee Public | CI Group vs. CMO Public | CI Group vs. CPR Gomu Industrial |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |