Correlation Between Jay Mart and Nex Point
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Nex Point 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 Nex Point 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 Nex Point Public, you can compare the effects of market volatilities on Jay Mart and Nex Point 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 Nex Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Nex Point.
Diversification Opportunities for Jay Mart and Nex Point
Weak diversification
The 3 months correlation between Jay and Nex is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Nex Point Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nex Point 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 Nex Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nex Point Public has no effect on the direction of Jay Mart i.e., Jay Mart and Nex Point go up and down completely randomly.
Pair Corralation between Jay Mart and Nex Point
Assuming the 90 days trading horizon Jay Mart Public is expected to generate 0.58 times more return on investment than Nex Point. However, Jay Mart Public is 1.71 times less risky than Nex Point. It trades about -0.27 of its potential returns per unit of risk. Nex Point Public is currently generating about -0.46 per unit of risk. If you would invest 1,550 in Jay Mart Public on August 28, 2024 and sell it today you would lose (220.00) from holding Jay Mart Public or give up 14.19% 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. Nex Point Public
Performance |
| Timeline |
| Jay Mart Public |
| Nex Point Public |
Jay Mart and Nex Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Nex Point
The main advantage of trading using opposite Jay Mart and Nex Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Nex Point 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 Nex Point will offset losses from the drop in Nex Point'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 |
| Nex Point vs. Jay Mart Public | Nex Point vs. KCE Electronics Public | Nex Point vs. Hana Microelectronics Public | Nex Point vs. Energy Absolute 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |