Correlation Between JMT Network and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both JMT Network and Hana Microelectronics 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 Hana Microelectronics 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 Hana Microelectronics Public, you can compare the effects of market volatilities on JMT Network and Hana Microelectronics 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 Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Hana Microelectronics.
Diversification Opportunities for JMT Network and Hana Microelectronics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between JMT and Hana is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics 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 Hana Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Microelectronics has no effect on the direction of JMT Network i.e., JMT Network and Hana Microelectronics go up and down completely randomly.
Pair Corralation between JMT Network and Hana Microelectronics
Assuming the 90 days trading horizon JMT Network Services is expected to generate 0.89 times more return on investment than Hana Microelectronics. However, JMT Network Services is 1.13 times less risky than Hana Microelectronics. It trades about -0.12 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about -0.38 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. Hana Microelectronics Public
Performance |
| Timeline |
| JMT Network Services |
| Hana Microelectronics |
JMT Network and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMT Network and Hana Microelectronics
The main advantage of trading using opposite JMT Network and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, Hana Microelectronics 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 Hana Microelectronics will offset losses from the drop in Hana Microelectronics' 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 |
| Hana Microelectronics vs. KCE Electronics Public | Hana Microelectronics vs. Land and Houses | Hana Microelectronics vs. Delta Electronics Public | Hana Microelectronics vs. The Siam Cement |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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