Correlation Between JMT Network and Dow Jones
Can any of the company-specific risk be diversified away by investing in both JMT Network and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on JMT Network and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Dow Jones.
Diversification Opportunities for JMT Network and Dow Jones
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between JMT and Dow is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of JMT Network i.e., JMT Network and Dow Jones go up and down completely randomly.
Pair Corralation between JMT Network and Dow Jones
Assuming the 90 days trading horizon JMT Network Services is expected to under-perform the Dow Jones. In addition to that, JMT Network is 5.54 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,872,633 in Dow Jones Industrial on November 4, 2024 and sell it today you would earn a total of 581,833 from holding Dow Jones Industrial or generate 15.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
JMT Network Services vs. Dow Jones Industrial
Performance |
| Timeline |
JMT Network and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
JMT Network Services
Pair trading matchups for JMT Network
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with JMT Network and Dow Jones
The main advantage of trading using opposite JMT Network and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Rambler Metals and | Dow Jones vs. Nicola Mining | Dow Jones vs. Old Dominion Freight | Dow Jones vs. United Guardian |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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