Correlation Between Ichitan Group and Jay Mart
Can any of the company-specific risk be diversified away by investing in both Ichitan 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 Ichitan 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 Ichitan Group Public and Jay Mart Public, you can compare the effects of market volatilities on Ichitan 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 Ichitan Group with a short position of Jay Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichitan Group and Jay Mart.
Diversification Opportunities for Ichitan Group and Jay Mart
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ichitan and Jay is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ichitan 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 Ichitan 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 Ichitan 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 Ichitan Group i.e., Ichitan Group and Jay Mart go up and down completely randomly.
Pair Corralation between Ichitan Group and Jay Mart
Assuming the 90 days trading horizon Ichitan Group Public is expected to generate 0.32 times more return on investment than Jay Mart. However, Ichitan Group Public is 3.1 times less risky than Jay Mart. It trades about 0.22 of its potential returns per unit of risk. Jay Mart Public is currently generating about -0.19 per unit of risk. If you would invest 1,386 in Ichitan Group Public on September 23, 2024 and sell it today you would earn a total of 34.00 from holding Ichitan Group Public or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ichitan Group Public vs. Jay Mart Public
Performance |
| Timeline |
| Ichitan Group Public |
| Jay Mart Public |
Ichitan Group and Jay Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ichitan Group and Jay Mart
The main advantage of trading using opposite Ichitan Group and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichitan 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.| Ichitan Group vs. Jay Mart Public | Ichitan Group vs. Krungthai Card Public | Ichitan Group vs. The Erawan Group | Ichitan Group vs. Autocorp Holding 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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