Correlation Between JD Food and Chamni Eye
Can any of the company-specific risk be diversified away by investing in both JD Food and Chamni Eye 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 JD Food and Chamni Eye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Food PCL and Chamni Eye PCL, you can compare the effects of market volatilities on JD Food and Chamni Eye 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 JD Food with a short position of Chamni Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Food and Chamni Eye.
Diversification Opportunities for JD Food and Chamni Eye
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JDF and Chamni is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding JD Food PCL and Chamni Eye PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chamni Eye PCL and JD Food 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 JD Food PCL are associated (or correlated) with Chamni Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chamni Eye PCL has no effect on the direction of JD Food i.e., JD Food and Chamni Eye go up and down completely randomly.
Pair Corralation between JD Food and Chamni Eye
Assuming the 90 days trading horizon JD Food PCL is expected to generate 1.53 times more return on investment than Chamni Eye. However, JD Food is 1.53 times more volatile than Chamni Eye PCL. It trades about 0.13 of its potential returns per unit of risk. Chamni Eye PCL is currently generating about -0.43 per unit of risk. If you would invest 200.00 in JD Food PCL on August 26, 2024 and sell it today you would earn a total of 10.00 from holding JD Food PCL or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Food PCL vs. Chamni Eye PCL
Performance |
| Timeline |
| JD Food PCL |
| Chamni Eye PCL |
JD Food and Chamni Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Food and Chamni Eye
The main advantage of trading using opposite JD Food and Chamni Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Food position performs unexpectedly, Chamni Eye 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 Chamni Eye will offset losses from the drop in Chamni Eye's long position.| JD Food vs. Chamni Eye PCL | JD Food vs. Siam Global House | JD Food vs. The Erawan Group | JD Food vs. Ditto Public |
| Chamni Eye vs. Bioscience Animal Health | Chamni Eye vs. Bless Asset Group | Chamni Eye vs. CAZ Public | Chamni Eye vs. Bluebik Group PCL |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |