Correlation Between Jay Mart and Ichitan Group
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Ichitan Group 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 Ichitan Group 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 Ichitan Group Public, you can compare the effects of market volatilities on Jay Mart and Ichitan Group 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 Ichitan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Ichitan Group.
Diversification Opportunities for Jay Mart and Ichitan Group
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jay and Ichitan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Ichitan Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichitan Group 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 Ichitan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichitan Group Public has no effect on the direction of Jay Mart i.e., Jay Mart and Ichitan Group go up and down completely randomly.
Pair Corralation between Jay Mart and Ichitan Group
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Ichitan Group. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 19.94 times less risky than Ichitan Group. The stock trades about -0.04 of its potential returns per unit of risk. The Ichitan Group Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,144 in Ichitan Group Public on September 23, 2024 and sell it today you would earn a total of 276.00 from holding Ichitan Group Public or generate 24.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jay Mart Public vs. Ichitan Group Public
Performance |
| Timeline |
| Jay Mart Public |
| Ichitan Group Public |
Jay Mart and Ichitan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Ichitan Group
The main advantage of trading using opposite Jay Mart and Ichitan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Ichitan Group 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 Ichitan Group will offset losses from the drop in Ichitan Group's long position.| Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. Singer Thailand Public | Jay Mart vs. Hana Microelectronics Public |
| Ichitan Group vs. Ichitan Group Public | Ichitan Group vs. The Siam Commercial | Ichitan Group vs. Rojana Industrial Park | Ichitan Group vs. WHA Utilities and |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |