Correlation Between Jasmine International and Loxley Public
Can any of the company-specific risk be diversified away by investing in both Jasmine International and Loxley 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 Loxley 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 Loxley Public, you can compare the effects of market volatilities on Jasmine International and Loxley 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 Loxley Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Loxley Public.
Diversification Opportunities for Jasmine International and Loxley Public
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jasmine and Loxley is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and Loxley Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loxley 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 Loxley Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loxley Public has no effect on the direction of Jasmine International i.e., Jasmine International and Loxley Public go up and down completely randomly.
Pair Corralation between Jasmine International and Loxley Public
Assuming the 90 days trading horizon Jasmine International Public is expected to under-perform the Loxley Public. In addition to that, Jasmine International is 1.35 times more volatile than Loxley Public. It trades about -0.17 of its total potential returns per unit of risk. Loxley Public is currently generating about -0.21 per unit of volatility. If you would invest 136.00 in Loxley Public on December 11, 2024 and sell it today you would lose (19.00) from holding Loxley Public or give up 13.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine International Public vs. Loxley Public
Performance |
| Timeline |
| Jasmine International |
| Loxley Public |
Jasmine International and Loxley Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and Loxley Public
The main advantage of trading using opposite Jasmine International and Loxley Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, Loxley 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 Loxley Public will offset losses from the drop in Loxley 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 |
| Loxley Public vs. Jasmine International Public | Loxley Public vs. LPN Development Public | Loxley Public vs. Italian Thai Development Public | Loxley Public vs. MC Group 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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