Correlation Between Jasmine International and Hydrotek Public
Can any of the company-specific risk be diversified away by investing in both Jasmine International and Hydrotek Public 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 Hydrotek Public 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 Hydrotek Public, you can compare the effects of market volatilities on Jasmine International and Hydrotek Public 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 Hydrotek Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Hydrotek Public.
Diversification Opportunities for Jasmine International and Hydrotek Public
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jasmine and Hydrotek is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and Hydrotek Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrotek 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 Hydrotek Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrotek Public has no effect on the direction of Jasmine International i.e., Jasmine International and Hydrotek Public go up and down completely randomly.
Pair Corralation between Jasmine International and Hydrotek Public
Assuming the 90 days trading horizon Jasmine International Public is expected to generate 0.48 times more return on investment than Hydrotek Public. However, Jasmine International Public is 2.07 times less risky than Hydrotek Public. It trades about 0.05 of its potential returns per unit of risk. Hydrotek Public is currently generating about -0.01 per unit of risk. If you would invest 193.00 in Jasmine International Public on September 1, 2024 and sell it today you would earn a total of 39.00 from holding Jasmine International Public or generate 20.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine International Public vs. Hydrotek Public
Performance |
| Timeline |
| Jasmine International |
| Hydrotek Public |
Jasmine International and Hydrotek Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and Hydrotek Public
The main advantage of trading using opposite Jasmine International and Hydrotek Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, Hydrotek Public 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 Hydrotek Public will offset losses from the drop in Hydrotek Public'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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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