Correlation Between JMT Network and Saksiam Leasing
Can any of the company-specific risk be diversified away by investing in both JMT Network and Saksiam Leasing 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 Saksiam Leasing 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 Saksiam Leasing Public, you can compare the effects of market volatilities on JMT Network and Saksiam Leasing 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 Saksiam Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Saksiam Leasing.
Diversification Opportunities for JMT Network and Saksiam Leasing
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JMT and Saksiam is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Saksiam Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saksiam Leasing 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 Saksiam Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saksiam Leasing Public has no effect on the direction of JMT Network i.e., JMT Network and Saksiam Leasing go up and down completely randomly.
Pair Corralation between JMT Network and Saksiam Leasing
Assuming the 90 days trading horizon JMT Network Services is expected to generate 1.56 times more return on investment than Saksiam Leasing. However, JMT Network is 1.56 times more volatile than Saksiam Leasing Public. It trades about 0.04 of its potential returns per unit of risk. Saksiam Leasing Public is currently generating about 0.0 per unit of risk. If you would invest 1,657 in JMT Network Services on August 25, 2024 and sell it today you would earn a total of 143.00 from holding JMT Network Services or generate 8.63% 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. Saksiam Leasing Public
Performance |
| Timeline |
| JMT Network Services |
| Saksiam Leasing Public |
JMT Network and Saksiam Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMT Network and Saksiam Leasing
The main advantage of trading using opposite JMT Network and Saksiam Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, Saksiam Leasing 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 Saksiam Leasing will offset losses from the drop in Saksiam Leasing'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 |
| Saksiam Leasing vs. Amanah Leasing Public | Saksiam Leasing vs. Infraset Public | Saksiam Leasing 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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