Correlation Between Jay Mart and Dohome Public
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Dohome 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 Jay Mart and Dohome Public 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 Dohome Public, you can compare the effects of market volatilities on Jay Mart and Dohome 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 Jay Mart with a short position of Dohome Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Dohome Public.
Diversification Opportunities for Jay Mart and Dohome Public
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jay and Dohome is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Dohome Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dohome Public 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 Dohome Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dohome Public has no effect on the direction of Jay Mart i.e., Jay Mart and Dohome Public go up and down completely randomly.
Pair Corralation between Jay Mart and Dohome Public
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Dohome Public. In addition to that, Jay Mart is 1.11 times more volatile than Dohome Public. It trades about -0.28 of its total potential returns per unit of risk. Dohome Public is currently generating about 0.04 per unit of volatility. If you would invest 980.00 in Dohome Public on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Dohome Public or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jay Mart Public vs. Dohome Public
Performance |
| Timeline |
| Jay Mart Public |
| Dohome Public |
Jay Mart and Dohome Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Dohome Public
The main advantage of trading using opposite Jay Mart and Dohome Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Dohome 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 Dohome Public will offset losses from the drop in Dohome Public'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 |
| Dohome Public vs. Com7 PCL | Dohome Public vs. Central Retail | Dohome Public vs. Siam Global House | Dohome Public 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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