Correlation Between Jay Mart and Beryl 8
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Beryl 8 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 Jay Mart and Beryl 8 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jay Mart Public and Beryl 8 Plus, you can compare the effects of market volatilities on Jay Mart and Beryl 8 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 Jay Mart with a short position of Beryl 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Beryl 8.
Diversification Opportunities for Jay Mart and Beryl 8
Poor diversification
The 3 months correlation between Jay and Beryl is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Beryl 8 Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beryl 8 Plus and Jay Mart 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 Jay Mart Public are associated (or correlated) with Beryl 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beryl 8 Plus has no effect on the direction of Jay Mart i.e., Jay Mart and Beryl 8 go up and down completely randomly.
Pair Corralation between Jay Mart and Beryl 8
Assuming the 90 days trading horizon Jay Mart Public is expected to generate 1.04 times more return on investment than Beryl 8. However, Jay Mart is 1.04 times more volatile than Beryl 8 Plus. It trades about -0.27 of its potential returns per unit of risk. Beryl 8 Plus is currently generating about -0.64 per unit of risk. If you would invest 1,550 in Jay Mart Public on August 28, 2024 and sell it today you would lose (220.00) from holding Jay Mart Public or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jay Mart Public vs. Beryl 8 Plus
Performance |
| Timeline |
| Jay Mart Public |
| Beryl 8 Plus |
Jay Mart and Beryl 8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Beryl 8
The main advantage of trading using opposite Jay Mart and Beryl 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Beryl 8 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 Beryl 8 will offset losses from the drop in Beryl 8's long position.| Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. KCE Electronics Public | Jay Mart vs. Singer Thailand Public |
| Beryl 8 vs. Delta Electronics Public | Beryl 8 vs. Delta Electronics Public | Beryl 8 vs. Airports of Thailand | Beryl 8 vs. Airports of Thailand |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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