Correlation Between Jay Mart and JD Food
Can any of the company-specific risk be diversified away by investing in both Jay Mart and JD Food 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 JD Food 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 JD Food PCL, you can compare the effects of market volatilities on Jay Mart and JD Food 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 JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and JD Food.
Diversification Opportunities for Jay Mart and JD Food
Very weak diversification
The 3 months correlation between Jay and JDF is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL 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 JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Jay Mart i.e., Jay Mart and JD Food go up and down completely randomly.
Pair Corralation between Jay Mart and JD Food
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the JD Food. In addition to that, Jay Mart is 1.85 times more volatile than JD Food PCL. It trades about -0.01 of its total potential returns per unit of risk. JD Food PCL is currently generating about 0.01 per unit of volatility. If you would invest 203.00 in JD Food PCL on September 1, 2024 and sell it today you would earn a total of 1.00 from holding JD Food PCL or generate 0.49% 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. JD Food PCL
Performance |
| Timeline |
| Jay Mart Public |
| JD Food PCL |
Jay Mart and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and JD Food
The main advantage of trading using opposite Jay Mart and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food'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 |
| JD Food vs. Mega Lifesciences Public | JD Food vs. Com7 PCL | JD Food vs. Thai Union Group | JD Food vs. Jay Mart Public |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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