Correlation Between JMT Network and AIRA Factoring
Can any of the company-specific risk be diversified away by investing in both JMT Network and AIRA Factoring 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 JMT Network and AIRA Factoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JMT Network Services and AIRA Factoring Public, you can compare the effects of market volatilities on JMT Network and AIRA Factoring 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 JMT Network with a short position of AIRA Factoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and AIRA Factoring.
Diversification Opportunities for JMT Network and AIRA Factoring
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JMT and AIRA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and AIRA Factoring Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRA Factoring Public and JMT Network 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 JMT Network Services are associated (or correlated) with AIRA Factoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRA Factoring Public has no effect on the direction of JMT Network i.e., JMT Network and AIRA Factoring go up and down completely randomly.
Pair Corralation between JMT Network and AIRA Factoring
Assuming the 90 days trading horizon JMT Network Services is expected to under-perform the AIRA Factoring. But the stock apears to be less risky and, when comparing its historical volatility, JMT Network Services is 2.27 times less risky than AIRA Factoring. The stock trades about -0.12 of its potential returns per unit of risk. The AIRA Factoring Public is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 62.00 in AIRA Factoring Public on August 25, 2024 and sell it today you would lose (3.00) from holding AIRA Factoring Public or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JMT Network Services vs. AIRA Factoring Public
Performance |
| Timeline |
| JMT Network Services |
| AIRA Factoring Public |
JMT Network and AIRA Factoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMT Network and AIRA Factoring
The main advantage of trading using opposite JMT Network and AIRA Factoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, AIRA Factoring 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 AIRA Factoring will offset losses from the drop in AIRA Factoring's long position.| JMT Network vs. Jay Mart Public | JMT Network vs. Com7 PCL | JMT Network vs. KCE Electronics Public | JMT Network vs. Muangthai Capital Public |
| AIRA Factoring vs. Amanah Leasing Public | AIRA Factoring vs. Infraset Public | AIRA Factoring vs. JMT Network Services |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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