Correlation Between Jasmine International and KGI Securities
Can any of the company-specific risk be diversified away by investing in both Jasmine International and KGI Securities 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 KGI Securities 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 KGI Securities Public, you can compare the effects of market volatilities on Jasmine International and KGI Securities 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 KGI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and KGI Securities.
Diversification Opportunities for Jasmine International and KGI Securities
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jasmine and KGI is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and KGI Securities Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGI Securities 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 KGI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGI Securities Public has no effect on the direction of Jasmine International i.e., Jasmine International and KGI Securities go up and down completely randomly.
Pair Corralation between Jasmine International and KGI Securities
Assuming the 90 days trading horizon Jasmine International Public is expected to under-perform the KGI Securities. In addition to that, Jasmine International is 6.13 times more volatile than KGI Securities Public. It trades about -0.36 of its total potential returns per unit of risk. KGI Securities Public is currently generating about -0.12 per unit of volatility. If you would invest 420.00 in KGI Securities Public on November 9, 2024 and sell it today you would lose (4.00) from holding KGI Securities Public or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine International Public vs. KGI Securities Public
Performance |
| Timeline |
| Jasmine International |
| KGI Securities Public |
Jasmine International and KGI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and KGI Securities
The main advantage of trading using opposite Jasmine International and KGI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, KGI Securities 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 KGI Securities will offset losses from the drop in KGI Securities' 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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