Correlation Between II Group and Jay Mart
Can any of the company-specific risk be diversified away by investing in both II 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 II 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 II Group Public and Jay Mart Public, you can compare the effects of market volatilities on II 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 II Group with a short position of Jay Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of II Group and Jay Mart.
Diversification Opportunities for II Group and Jay Mart
Very weak diversification
The 3 months correlation between IIG and Jay is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding II 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 II 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 II 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 II Group i.e., II Group and Jay Mart go up and down completely randomly.
Pair Corralation between II Group and Jay Mart
Assuming the 90 days trading horizon II Group Public is expected to generate 50.16 times more return on investment than Jay Mart. However, II Group is 50.16 times more volatile than Jay Mart Public. It trades about 0.12 of its potential returns per unit of risk. Jay Mart Public is currently generating about -0.1 per unit of risk. If you would invest 462.00 in II Group Public on August 28, 2024 and sell it today you would earn a total of 48.00 from holding II Group Public or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
II Group Public vs. Jay Mart Public
Performance |
| Timeline |
| II Group Public |
| Jay Mart Public |
II Group and Jay Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with II Group and Jay Mart
The main advantage of trading using opposite II Group and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if II 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.| II Group vs. Com7 PCL | II Group vs. Beryl 8 Plus | II Group vs. Hana Microelectronics Public | II Group vs. Jay Mart Public |
| Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. KCE Electronics Public | Jay Mart vs. Singer Thailand 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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