Correlation Between JMT Network and Singer Thailand
Can any of the company-specific risk be diversified away by investing in both JMT Network and Singer Thailand 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 Singer Thailand 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 Singer Thailand Public, you can compare the effects of market volatilities on JMT Network and Singer Thailand 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 Singer Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Singer Thailand.
Diversification Opportunities for JMT Network and Singer Thailand
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JMT and Singer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Singer Thailand Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singer Thailand 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 Singer Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singer Thailand Public has no effect on the direction of JMT Network i.e., JMT Network and Singer Thailand go up and down completely randomly.
Pair Corralation between JMT Network and Singer Thailand
Assuming the 90 days trading horizon JMT Network Services is expected to under-perform the Singer Thailand. But the stock apears to be less risky and, when comparing its historical volatility, JMT Network Services is 12.04 times less risky than Singer Thailand. The stock trades about -0.05 of its potential returns per unit of risk. The Singer Thailand Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,161 in Singer Thailand Public on November 19, 2024 and sell it today you would lose (1,581) from holding Singer Thailand Public or give up 73.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
JMT Network Services vs. Singer Thailand Public
Performance |
| Timeline |
| JMT Network Services |
| Singer Thailand Public |
JMT Network and Singer Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMT Network and Singer Thailand
The main advantage of trading using opposite JMT Network and Singer Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, Singer Thailand 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 Singer Thailand will offset losses from the drop in Singer Thailand'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 |
| Singer Thailand vs. Jay Mart Public | Singer Thailand vs. JMT Network Services | Singer Thailand vs. KCE Electronics Public | Singer Thailand vs. Srisawad Power 1979 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |