Correlation Between Jay Mart and Srisawad Power
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Srisawad Power 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 Srisawad Power 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 Srisawad Power 1979, you can compare the effects of market volatilities on Jay Mart and Srisawad Power 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 Srisawad Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Srisawad Power.
Diversification Opportunities for Jay Mart and Srisawad Power
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jay and Srisawad is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Srisawad Power 1979 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Power 1979 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 Srisawad Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Power 1979 has no effect on the direction of Jay Mart i.e., Jay Mart and Srisawad Power go up and down completely randomly.
Pair Corralation between Jay Mart and Srisawad Power
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Srisawad Power. In addition to that, Jay Mart is 1.52 times more volatile than Srisawad Power 1979. It trades about -0.21 of its total potential returns per unit of risk. Srisawad Power 1979 is currently generating about -0.07 per unit of volatility. If you would invest 3,925 in Srisawad Power 1979 on November 4, 2024 and sell it today you would lose (225.00) from holding Srisawad Power 1979 or give up 5.73% 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. Srisawad Power 1979
Performance |
| Timeline |
| Jay Mart Public |
| Srisawad Power 1979 |
Jay Mart and Srisawad Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Srisawad Power
The main advantage of trading using opposite Jay Mart and Srisawad Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Srisawad Power 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 Srisawad Power will offset losses from the drop in Srisawad Power'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 |
| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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