Correlation Between Jasmine International and Advanced Information
Can any of the company-specific risk be diversified away by investing in both Jasmine International and Advanced Information 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 Jasmine International and Advanced Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasmine International Public and Advanced Information Technology, you can compare the effects of market volatilities on Jasmine International and Advanced Information 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 Jasmine International with a short position of Advanced Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Advanced Information.
Diversification Opportunities for Jasmine International and Advanced Information
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jasmine and Advanced is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and Advanced Information Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Information and Jasmine International 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 Jasmine International Public are associated (or correlated) with Advanced Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Information has no effect on the direction of Jasmine International i.e., Jasmine International and Advanced Information go up and down completely randomly.
Pair Corralation between Jasmine International and Advanced Information
Assuming the 90 days trading horizon Jasmine International is expected to generate 17.86 times less return on investment than Advanced Information. But when comparing it to its historical volatility, Jasmine International Public is 11.99 times less risky than Advanced Information. It trades about 0.03 of its potential returns per unit of risk. Advanced Information Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Advanced Information Technology on October 23, 2024 and sell it today you would lose (182.00) from holding Advanced Information Technology or give up 30.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine International Public vs. Advanced Information Technolog
Performance |
| Timeline |
| Jasmine International |
| Advanced Information |
Jasmine International and Advanced Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and Advanced Information
The main advantage of trading using opposite Jasmine International and Advanced Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, Advanced Information 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 Advanced Information will offset losses from the drop in Advanced Information's long position.| Jasmine International vs. True Public | Jasmine International vs. Land and Houses | Jasmine International vs. Advanced Info Service | Jasmine International vs. Krung Thai Bank |
| Advanced Information vs. AP Public | Advanced Information vs. Jasmine International Public | Advanced Information vs. Asia Plus Group | Advanced Information 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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