Correlation Between Jay Mart and Sabuy Technology
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Sabuy Technology 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 Sabuy Technology 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 Sabuy Technology Public, you can compare the effects of market volatilities on Jay Mart and Sabuy Technology 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 Sabuy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Sabuy Technology.
Diversification Opportunities for Jay Mart and Sabuy Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jay and Sabuy is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Sabuy Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabuy Technology 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 Sabuy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabuy Technology Public has no effect on the direction of Jay Mart i.e., Jay Mart and Sabuy Technology go up and down completely randomly.
Pair Corralation between Jay Mart and Sabuy Technology
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Sabuy Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 11.64 times less risky than Sabuy Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Sabuy Technology Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,046 in Sabuy Technology Public on August 30, 2024 and sell it today you would lose (1,001) from holding Sabuy Technology Public or give up 95.7% 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. Sabuy Technology Public
Performance |
| Timeline |
| Jay Mart Public |
| Sabuy Technology Public |
Jay Mart and Sabuy Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Sabuy Technology
The main advantage of trading using opposite Jay Mart and Sabuy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Sabuy Technology 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 Sabuy Technology will offset losses from the drop in Sabuy Technology's long position.| Jay Mart vs. AP Public | Jay Mart vs. Jasmine International Public | Jay Mart vs. Asia Plus Group | Jay Mart vs. Bangchak Public |
| Sabuy Technology vs. Jay Mart Public | Sabuy Technology vs. Forth Public | Sabuy Technology vs. Singer Thailand Public | Sabuy Technology vs. PTT Oil and |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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