Correlation Between Jasmine International and BEC World
Can any of the company-specific risk be diversified away by investing in both Jasmine International and BEC World 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 BEC World 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 BEC World Public, you can compare the effects of market volatilities on Jasmine International and BEC World 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 BEC World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and BEC World.
Diversification Opportunities for Jasmine International and BEC World
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jasmine and BEC is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and BEC World Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEC World Public 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 BEC World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEC World Public has no effect on the direction of Jasmine International i.e., Jasmine International and BEC World go up and down completely randomly.
Pair Corralation between Jasmine International and BEC World
Assuming the 90 days trading horizon Jasmine International Public is expected to generate 1.37 times more return on investment than BEC World. However, Jasmine International is 1.37 times more volatile than BEC World Public. It trades about 0.13 of its potential returns per unit of risk. BEC World Public is currently generating about -0.21 per unit of risk. If you would invest 222.00 in Jasmine International Public on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Jasmine International Public or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine International Public vs. BEC World Public
Performance |
| Timeline |
| Jasmine International |
| BEC World Public |
Jasmine International and BEC World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and BEC World
The main advantage of trading using opposite Jasmine International and BEC World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, BEC World 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 BEC World will offset losses from the drop in BEC World'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 |
| BEC World vs. Land and Houses | BEC World vs. AP Public | BEC World vs. Bangkok Bank Public | BEC World vs. Charoen Pokphand Foods |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |