Correlation Between Jasmine International and Fine Metal
Can any of the company-specific risk be diversified away by investing in both Jasmine International and Fine Metal 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 Fine Metal 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 Fine Metal Technologies, you can compare the effects of market volatilities on Jasmine International and Fine Metal 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 Fine Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Fine Metal.
Diversification Opportunities for Jasmine International and Fine Metal
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jasmine and Fine is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and Fine Metal Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Metal Technologies 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 Fine Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Metal Technologies has no effect on the direction of Jasmine International i.e., Jasmine International and Fine Metal go up and down completely randomly.
Pair Corralation between Jasmine International and Fine Metal
Assuming the 90 days trading horizon Jasmine International Public is expected to generate 0.9 times more return on investment than Fine Metal. However, Jasmine International Public is 1.11 times less risky than Fine Metal. It trades about 0.13 of its potential returns per unit of risk. Fine Metal Technologies is currently generating about -0.02 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. Fine Metal Technologies
Performance |
| Timeline |
| Jasmine International |
| Fine Metal Technologies |
Jasmine International and Fine Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and Fine Metal
The main advantage of trading using opposite Jasmine International and Fine Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, Fine Metal 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 Fine Metal will offset losses from the drop in Fine Metal's long position.| Jasmine International vs. Indara Insurance Public | Jasmine International vs. Regional Container Lines | Jasmine International vs. Regional Container Lines | Jasmine International vs. Mahachai Hospital Public |
| Fine Metal vs. GFPT Public | Fine Metal vs. Kulthorn Kirby Public | Fine Metal vs. Chumporn Palm Oil | Fine Metal vs. Haad Thip 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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