Correlation Between Jay Mart and Samart Digital
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Samart Digital 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 Samart Digital 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 Samart Digital Public, you can compare the effects of market volatilities on Jay Mart and Samart Digital 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 Samart Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Samart Digital.
Diversification Opportunities for Jay Mart and Samart Digital
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jay and Samart is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Samart Digital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart Digital 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 Samart Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Digital Public has no effect on the direction of Jay Mart i.e., Jay Mart and Samart Digital go up and down completely randomly.
Pair Corralation between Jay Mart and Samart Digital
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Samart Digital. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 2.75 times less risky than Samart Digital. The stock trades about -0.13 of its potential returns per unit of risk. The Samart Digital Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Samart Digital Public on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Samart Digital Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jay Mart Public vs. Samart Digital Public
Performance |
| Timeline |
| Jay Mart Public |
| Samart Digital Public |
Jay Mart and Samart Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Samart Digital
The main advantage of trading using opposite Jay Mart and Samart Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Samart Digital 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 Samart Digital will offset losses from the drop in Samart Digital'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 |
| Samart Digital vs. Jay Mart Public | Samart Digital vs. Samart Public | Samart Digital vs. Jasmine International Public | Samart Digital vs. Internet Thailand 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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