Correlation Between Jay Mart and Filter Vision
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Filter Vision 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 Filter Vision 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 Filter Vision Public, you can compare the effects of market volatilities on Jay Mart and Filter Vision 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 Filter Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Filter Vision.
Diversification Opportunities for Jay Mart and Filter Vision
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jay and Filter is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Filter Vision Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filter Vision 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 Filter Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filter Vision Public has no effect on the direction of Jay Mart i.e., Jay Mart and Filter Vision go up and down completely randomly.
Pair Corralation between Jay Mart and Filter Vision
Assuming the 90 days trading horizon Jay Mart is expected to generate 52.75 times less return on investment than Filter Vision. But when comparing it to its historical volatility, Jay Mart Public is 18.97 times less risky than Filter Vision. It trades about 0.03 of its potential returns per unit of risk. Filter Vision Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Filter Vision Public on August 25, 2024 and sell it today you would lose (9.00) from holding Filter Vision Public or give up 11.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jay Mart Public vs. Filter Vision Public
Performance |
| Timeline |
| Jay Mart Public |
| Filter Vision Public |
Jay Mart and Filter Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Filter Vision
The main advantage of trading using opposite Jay Mart and Filter Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Filter Vision 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 Filter Vision will offset losses from the drop in Filter Vision'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 |
| Filter Vision vs. G Capital Public | Filter Vision vs. Cho Thavee Public | Filter Vision vs. E for L | Filter Vision vs. East Coast Furnitech |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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