Correlation Between Jasmine International and Kang Yong
Can any of the company-specific risk be diversified away by investing in both Jasmine International and Kang Yong 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 Kang Yong 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 Kang Yong Electric, you can compare the effects of market volatilities on Jasmine International and Kang Yong 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 Kang Yong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Kang Yong.
Diversification Opportunities for Jasmine International and Kang Yong
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jasmine and Kang is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and Kang Yong Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kang Yong Electric 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 Kang Yong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kang Yong Electric has no effect on the direction of Jasmine International i.e., Jasmine International and Kang Yong go up and down completely randomly.
Pair Corralation between Jasmine International and Kang Yong
Assuming the 90 days trading horizon Jasmine International Public is expected to generate 6.23 times more return on investment than Kang Yong. However, Jasmine International is 6.23 times more volatile than Kang Yong Electric. It trades about 0.13 of its potential returns per unit of risk. Kang Yong Electric is currently generating about -0.14 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine International Public vs. Kang Yong Electric
Performance |
| Timeline |
| Jasmine International |
| Kang Yong Electric |
Jasmine International and Kang Yong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and Kang Yong
The main advantage of trading using opposite Jasmine International and Kang Yong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, Kang Yong 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 Kang Yong will offset losses from the drop in Kang Yong'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 |
| Kang Yong vs. SCB X Public | Kang Yong vs. Kasikornbank Public | Kang Yong vs. PTT Public | Kang Yong vs. Kasikornbank 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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