Correlation Between Internet Thailand and Jasmine International
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Jasmine International 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 Internet Thailand and Jasmine International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Thailand Public and Jasmine International Public, you can compare the effects of market volatilities on Internet Thailand and Jasmine International 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 Internet Thailand with a short position of Jasmine International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Jasmine International.
Diversification Opportunities for Internet Thailand and Jasmine International
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Internet and Jasmine is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and Jasmine International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine International and Internet Thailand 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 Internet Thailand Public are associated (or correlated) with Jasmine International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine International has no effect on the direction of Internet Thailand i.e., Internet Thailand and Jasmine International go up and down completely randomly.
Pair Corralation between Internet Thailand and Jasmine International
Assuming the 90 days trading horizon Internet Thailand is expected to generate 1.02 times less return on investment than Jasmine International. But when comparing it to its historical volatility, Internet Thailand Public is 1.34 times less risky than Jasmine International. It trades about 0.08 of its potential returns per unit of risk. Jasmine International Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Jasmine International Public on August 25, 2024 and sell it today you would earn a total of 86.00 from holding Jasmine International Public or generate 57.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand Public vs. Jasmine International Public
Performance |
| Timeline |
| Internet Thailand Public |
| Jasmine International |
Internet Thailand and Jasmine International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Jasmine International
The main advantage of trading using opposite Internet Thailand and Jasmine International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, Jasmine International 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 International will offset losses from the drop in Jasmine International's long position.| Internet Thailand vs. Jasmine International Public | Internet Thailand vs. Hana Microelectronics Public | Internet Thailand vs. AP Public | Internet Thailand vs. KCE Electronics Public |
| Jasmine International vs. Indara Insurance Public | Jasmine International vs. Regional Container Lines | Jasmine International vs. Regional Container Lines | Jasmine International vs. Mahachai Hospital 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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