Correlation Between Jay Mart and Masterkool International
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Masterkool International 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 Masterkool International 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 Masterkool International Public, you can compare the effects of market volatilities on Jay Mart and Masterkool International 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 Masterkool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Masterkool International.
Diversification Opportunities for Jay Mart and Masterkool International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jay and Masterkool is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Masterkool International Publi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterkool International 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 Masterkool International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterkool International has no effect on the direction of Jay Mart i.e., Jay Mart and Masterkool International go up and down completely randomly.
Pair Corralation between Jay Mart and Masterkool International
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Masterkool International. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 12.5 times less risky than Masterkool International. The stock trades about 0.0 of its potential returns per unit of risk. The Masterkool International Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 48.00 in Masterkool International Public on August 29, 2024 and sell it today you would lose (16.00) from holding Masterkool International Public or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jay Mart Public vs. Masterkool International Publi
Performance |
| Timeline |
| Jay Mart Public |
| Masterkool International |
Jay Mart and Masterkool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Masterkool International
The main advantage of trading using opposite Jay Mart and Masterkool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Masterkool International 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 Masterkool International will offset losses from the drop in Masterkool International'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 |
| Masterkool International vs. Kingsmen CMTI Public | Masterkool International vs. Filter Vision Public | Masterkool International vs. Jay Mart Public | Masterkool International vs. KC Metalsheet 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |