Correlation Between Jay Mart and Knight Club
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Knight Club 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 Knight Club 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 Knight Club Capital, you can compare the effects of market volatilities on Jay Mart and Knight Club 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 Knight Club. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Knight Club.
Diversification Opportunities for Jay Mart and Knight Club
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jay and Knight is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Knight Club Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knight Club Capital 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 Knight Club. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knight Club Capital has no effect on the direction of Jay Mart i.e., Jay Mart and Knight Club go up and down completely randomly.
Pair Corralation between Jay Mart and Knight Club
Assuming the 90 days trading horizon Jay Mart Public is expected to generate 1.48 times more return on investment than Knight Club. However, Jay Mart is 1.48 times more volatile than Knight Club Capital. It trades about -0.13 of its potential returns per unit of risk. Knight Club Capital is currently generating about -0.57 per unit of risk. If you would invest 1,530 in Jay Mart Public on September 2, 2024 and sell it today you would lose (120.00) from holding Jay Mart Public or give up 7.84% 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. Knight Club Capital
Performance |
| Timeline |
| Jay Mart Public |
| Knight Club Capital |
Jay Mart and Knight Club Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Knight Club
The main advantage of trading using opposite Jay Mart and Knight Club positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Knight Club 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 Knight Club will offset losses from the drop in Knight Club'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 |
| Knight Club vs. AP Public | Knight Club vs. TRC Construction Public | Knight Club vs. Bangkok Expressway and | Knight Club vs. Lohakit Metal 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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