Correlation Between Jasmine Telecom and Digital Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Jasmine Telecom and Digital Telecommunicatio 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 Jasmine Telecom and Digital Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasmine Telecom Systems and Digital Telecommunications Infrastructure, you can compare the effects of market volatilities on Jasmine Telecom and Digital Telecommunicatio 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 Jasmine Telecom with a short position of Digital Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine Telecom and Digital Telecommunicatio.
Diversification Opportunities for Jasmine Telecom and Digital Telecommunicatio
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jasmine and Digital is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine Telecom Systems and Digital Telecommunications Inf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Telecommunicatio and Jasmine Telecom 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 Jasmine Telecom Systems are associated (or correlated) with Digital Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Telecommunicatio has no effect on the direction of Jasmine Telecom i.e., Jasmine Telecom and Digital Telecommunicatio go up and down completely randomly.
Pair Corralation between Jasmine Telecom and Digital Telecommunicatio
Assuming the 90 days trading horizon Jasmine Telecom Systems is expected to under-perform the Digital Telecommunicatio. In addition to that, Jasmine Telecom is 3.15 times more volatile than Digital Telecommunications Infrastructure. It trades about -0.08 of its total potential returns per unit of risk. Digital Telecommunications Infrastructure is currently generating about -0.12 per unit of volatility. If you would invest 932.00 in Digital Telecommunications Infrastructure on August 29, 2024 and sell it today you would lose (42.00) from holding Digital Telecommunications Infrastructure or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Jasmine Telecom Systems vs. Digital Telecommunications Inf
Performance |
| Timeline |
| Jasmine Telecom Systems |
| Digital Telecommunicatio |
Jasmine Telecom and Digital Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine Telecom and Digital Telecommunicatio
The main advantage of trading using opposite Jasmine Telecom and Digital Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine Telecom position performs unexpectedly, Digital Telecommunicatio 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 Digital Telecommunicatio will offset losses from the drop in Digital Telecommunicatio's long position.| Jasmine Telecom vs. AP Public | Jasmine Telecom vs. Jasmine International Public | Jasmine Telecom vs. Asia Plus Group | Jasmine Telecom vs. Bangchak Public |
| Digital Telecommunicatio vs. Land and Houses | Digital Telecommunicatio vs. Intouch Holdings Public | Digital Telecommunicatio vs. Kiatnakin Phatra Bank | Digital Telecommunicatio vs. Advanced Info Service |
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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