Correlation Between JMT Network and Srisawad Power
Can any of the company-specific risk be diversified away by investing in both JMT Network and Srisawad Power 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 Srisawad Power 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 Srisawad Power 1979, you can compare the effects of market volatilities on JMT Network and Srisawad Power 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 Srisawad Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Srisawad Power.
Diversification Opportunities for JMT Network and Srisawad Power
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JMT and Srisawad is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Srisawad Power 1979 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Power 1979 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 Srisawad Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Power 1979 has no effect on the direction of JMT Network i.e., JMT Network and Srisawad Power go up and down completely randomly.
Pair Corralation between JMT Network and Srisawad Power
Assuming the 90 days trading horizon JMT Network Services is expected to under-perform the Srisawad Power. But the stock apears to be less risky and, when comparing its historical volatility, JMT Network Services is 11.84 times less risky than Srisawad Power. The stock trades about -0.05 of its potential returns per unit of risk. The Srisawad Power 1979 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,075 in Srisawad Power 1979 on October 24, 2024 and sell it today you would lose (1,175) from holding Srisawad Power 1979 or give up 23.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JMT Network Services vs. Srisawad Power 1979
Performance |
| Timeline |
| JMT Network Services |
| Srisawad Power 1979 |
JMT Network and Srisawad Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMT Network and Srisawad Power
The main advantage of trading using opposite JMT Network and Srisawad Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, Srisawad Power 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 Srisawad Power will offset losses from the drop in Srisawad Power'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 |
| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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