Correlation Between Information and Jasmine Telecom
Can any of the company-specific risk be diversified away by investing in both Information 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 Information and Jasmine Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Information and Communication and Jasmine Telecom Systems, you can compare the effects of market volatilities on Information 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 Information with a short position of Jasmine Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Information and Jasmine Telecom.
Diversification Opportunities for Information and Jasmine Telecom
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Information and Jasmine is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Information and Communication 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 Information 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 Information and Communication 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 Information i.e., Information and Jasmine Telecom go up and down completely randomly.
Pair Corralation between Information and Jasmine Telecom
Assuming the 90 days trading horizon Information and Communication is expected to generate 0.79 times more return on investment than Jasmine Telecom. However, Information and Communication is 1.27 times less risky than Jasmine Telecom. It trades about -0.07 of its potential returns per unit of risk. Jasmine Telecom Systems is currently generating about -0.12 per unit of risk. If you would invest 229.00 in Information and Communication on September 3, 2024 and sell it today you would lose (9.00) from holding Information and Communication or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Information and Communication vs. Jasmine Telecom Systems
Performance |
| Timeline |
| Information and Comm |
| Jasmine Telecom Systems |
Information and Jasmine Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Information and Jasmine Telecom
The main advantage of trading using opposite Information and Jasmine Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Information 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.| Information vs. Hana Microelectronics Public | Information vs. Ekachai Medical Care | Information vs. Megachem Public | Information vs. Intouch Holdings Public |
| Jasmine Telecom vs. Jay Mart Public | Jasmine Telecom vs. Jasmine International Public | Jasmine Telecom vs. KCE Electronics Public | Jasmine Telecom vs. Delta Electronics 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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