Correlation Between JMT Network and G Capital
Can any of the company-specific risk be diversified away by investing in both JMT Network and G Capital 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 G Capital 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 G Capital Public, you can compare the effects of market volatilities on JMT Network and G Capital 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 G Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and G Capital.
Diversification Opportunities for JMT Network and G Capital
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between JMT and GCAP is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and G Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Capital 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 G Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Capital Public has no effect on the direction of JMT Network i.e., JMT Network and G Capital go up and down completely randomly.
Pair Corralation between JMT Network and G Capital
Assuming the 90 days trading horizon JMT Network Services is expected to generate 0.68 times more return on investment than G Capital. However, JMT Network Services is 1.47 times less risky than G Capital. It trades about -0.12 of its potential returns per unit of risk. G Capital Public is currently generating about -0.3 per unit of risk. If you would invest 1,980 in JMT Network Services on August 25, 2024 and sell it today you would lose (180.00) from holding JMT Network Services or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JMT Network Services vs. G Capital Public
Performance |
| Timeline |
| JMT Network Services |
| G Capital Public |
JMT Network and G Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMT Network and G Capital
The main advantage of trading using opposite JMT Network and G Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, G Capital 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 G Capital will offset losses from the drop in G Capital'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 |
| G Capital vs. East Coast Furnitech | G Capital vs. Filter Vision Public | G Capital vs. Cho Thavee Public | G Capital vs. Akkhie Prakarn 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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