Correlation Between Jay Mart and Minor International
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Minor 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 Minor 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 Minor International Public, you can compare the effects of market volatilities on Jay Mart and Minor 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Minor International.
Diversification Opportunities for Jay Mart and Minor International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jay and Minor is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of Jay Mart i.e., Jay Mart and Minor International go up and down completely randomly.
Pair Corralation between Jay Mart and Minor International
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Minor International. In addition to that, Jay Mart is 1.71 times more volatile than Minor International Public. It trades about -0.13 of its total potential returns per unit of risk. Minor International Public is currently generating about 0.26 per unit of volatility. If you would invest 2,400 in Minor International Public on December 11, 2024 and sell it today you would earn a total of 450.00 from holding Minor International Public or generate 18.75% 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. Minor International Public
Performance |
| Timeline |
| Jay Mart Public |
| Minor International |
Jay Mart and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Minor International
The main advantage of trading using opposite Jay Mart and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Minor 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 Minor International will offset losses from the drop in Minor 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 |
| Minor International vs. CP ALL Public | Minor International vs. Bangkok Dusit Medical | Minor International vs. Airports of Thailand | Minor International vs. Kasikornbank 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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