Correlation Between Jay Mart and Muangthai Capital
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Muangthai Capital 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 Muangthai Capital 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 Muangthai Capital Public, you can compare the effects of market volatilities on Jay Mart and Muangthai Capital 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 Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Muangthai Capital.
Diversification Opportunities for Jay Mart and Muangthai Capital
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jay and Muangthai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Muangthai Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muangthai Capital 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 Muangthai Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muangthai Capital Public has no effect on the direction of Jay Mart i.e., Jay Mart and Muangthai Capital go up and down completely randomly.
Pair Corralation between Jay Mart and Muangthai Capital
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Muangthai Capital. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 11.52 times less risky than Muangthai Capital. The stock trades about -0.03 of its potential returns per unit of risk. The Muangthai Capital Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,679 in Muangthai Capital Public on September 3, 2024 and sell it today you would earn a total of 1,246 from holding Muangthai Capital Public or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jay Mart Public vs. Muangthai Capital Public
Performance |
| Timeline |
| Jay Mart Public |
| Muangthai Capital Public |
Jay Mart and Muangthai Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Muangthai Capital
The main advantage of trading using opposite Jay Mart and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Muangthai Capital 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 Muangthai Capital will offset losses from the drop in Muangthai Capital'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 |
| Muangthai Capital vs. Srisawad Power 1979 | Muangthai Capital vs. Gulf Energy Development | Muangthai Capital vs. Krungthai Card PCL | Muangthai Capital vs. Carabao Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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