Correlation Between JD Food and DOHOME
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By analyzing existing cross correlation between JD Food PCL and DOHOME, you can compare the effects of market volatilities on JD Food and DOHOME 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 DOHOME. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Food and DOHOME.
Diversification Opportunities for JD Food and DOHOME
Poor diversification
The 3 months correlation between JDF and DOHOME is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding JD Food PCL and DOHOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOHOME 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 DOHOME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOHOME has no effect on the direction of JD Food i.e., JD Food and DOHOME go up and down completely randomly.
Pair Corralation between JD Food and DOHOME
Assuming the 90 days trading horizon JD Food PCL is expected to under-perform the DOHOME. But the stock apears to be less risky and, when comparing its historical volatility, JD Food PCL is 1.27 times less risky than DOHOME. The stock trades about -0.08 of its potential returns per unit of risk. The DOHOME is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,090 in DOHOME on August 29, 2024 and sell it today you would lose (95.00) from holding DOHOME or give up 8.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Food PCL vs. DOHOME
Performance |
| Timeline |
| JD Food PCL |
| DOHOME |
JD Food and DOHOME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Food and DOHOME
The main advantage of trading using opposite JD Food and DOHOME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Food position performs unexpectedly, DOHOME 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 DOHOME will offset losses from the drop in DOHOME's long position.| JD Food vs. Carabao Group Public | JD Food vs. Jay Mart Public | JD Food vs. Gulf Energy Development | JD Food vs. KCE Electronics Public |
| DOHOME vs. Com7 PCL | DOHOME vs. Central Retail | DOHOME vs. Siam Global House | DOHOME vs. Home Product Center |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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