Correlation Between JMT Network and IFS Capital
Can any of the company-specific risk be diversified away by investing in both JMT Network and IFS 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 IFS 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 IFS Capital Public, you can compare the effects of market volatilities on JMT Network and IFS 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 IFS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and IFS Capital.
Diversification Opportunities for JMT Network and IFS Capital
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JMT and IFS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and IFS Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFS 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 IFS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFS Capital Public has no effect on the direction of JMT Network i.e., JMT Network and IFS Capital go up and down completely randomly.
Pair Corralation between JMT Network and IFS Capital
Assuming the 90 days trading horizon JMT Network Services is expected to under-perform the IFS Capital. In addition to that, JMT Network is 1.33 times more volatile than IFS Capital Public. It trades about -0.23 of its total potential returns per unit of risk. IFS Capital Public is currently generating about 0.14 per unit of volatility. If you would invest 232.00 in IFS Capital Public on November 29, 2024 and sell it today you would earn a total of 14.00 from holding IFS Capital Public or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JMT Network Services vs. IFS Capital Public
Performance |
| Timeline |
| JMT Network Services |
| IFS Capital Public |
JMT Network and IFS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMT Network and IFS Capital
The main advantage of trading using opposite JMT Network and IFS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, IFS 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 IFS Capital will offset losses from the drop in IFS 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 |
| IFS Capital vs. Quality Construction Products | IFS Capital vs. Advanced Information Technology | IFS Capital vs. Srinanaporn Marketing Public | IFS Capital vs. CHUWIT FARM 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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