Correlation Between Jasmine International and MFEC PCL
Can any of the company-specific risk be diversified away by investing in both Jasmine International and MFEC PCL 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 MFEC PCL 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 MFEC PCL, you can compare the effects of market volatilities on Jasmine International and MFEC PCL 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 MFEC PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and MFEC PCL.
Diversification Opportunities for Jasmine International and MFEC PCL
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jasmine and MFEC is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and MFEC PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFEC PCL 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 MFEC PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFEC PCL has no effect on the direction of Jasmine International i.e., Jasmine International and MFEC PCL go up and down completely randomly.
Pair Corralation between Jasmine International and MFEC PCL
Assuming the 90 days trading horizon Jasmine International Public is expected to generate 1.56 times more return on investment than MFEC PCL. However, Jasmine International is 1.56 times more volatile than MFEC PCL. It trades about 0.13 of its potential returns per unit of risk. MFEC PCL is currently generating about 0.03 per unit of risk. If you would invest 222.00 in Jasmine International Public on August 28, 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. MFEC PCL
Performance |
| Timeline |
| Jasmine International |
| MFEC PCL |
Jasmine International and MFEC PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and MFEC PCL
The main advantage of trading using opposite Jasmine International and MFEC PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, MFEC PCL 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 MFEC PCL will offset losses from the drop in MFEC PCL'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 |
| MFEC PCL vs. AP Public | MFEC PCL vs. Jasmine International Public | MFEC PCL vs. Asia Plus Group | MFEC PCL vs. Bangkok Aviation Fuel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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