Correlation Between Jasmine Telecom and Interlink Telecom
Can any of the company-specific risk be diversified away by investing in both Jasmine Telecom and Interlink Telecom 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 Interlink Telecom 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 Interlink Telecom Public, you can compare the effects of market volatilities on Jasmine Telecom and Interlink Telecom 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 Interlink Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine Telecom and Interlink Telecom.
Diversification Opportunities for Jasmine Telecom and Interlink Telecom
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jasmine and Interlink is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine Telecom Systems and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom Public 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 Interlink Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of Jasmine Telecom i.e., Jasmine Telecom and Interlink Telecom go up and down completely randomly.
Pair Corralation between Jasmine Telecom and Interlink Telecom
Assuming the 90 days trading horizon Jasmine Telecom Systems is expected to generate 1.13 times more return on investment than Interlink Telecom. However, Jasmine Telecom is 1.13 times more volatile than Interlink Telecom Public. It trades about -0.12 of its potential returns per unit of risk. Interlink Telecom Public is currently generating about -0.14 per unit of risk. If you would invest 7,025 in Jasmine Telecom Systems on September 3, 2024 and sell it today you would lose (550.00) from holding Jasmine Telecom Systems or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine Telecom Systems vs. Interlink Telecom Public
Performance |
| Timeline |
| Jasmine Telecom Systems |
| Interlink Telecom Public |
Jasmine Telecom and Interlink Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine Telecom and Interlink Telecom
The main advantage of trading using opposite Jasmine Telecom and Interlink Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine Telecom position performs unexpectedly, Interlink Telecom 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 Interlink Telecom will offset losses from the drop in Interlink Telecom's long position.| Jasmine Telecom vs. Jay Mart Public | Jasmine Telecom vs. Jasmine International Public | Jasmine Telecom vs. KCE Electronics Public | Jasmine Telecom vs. Delta Electronics Public |
| Interlink Telecom vs. Interlink Communication Public | Interlink Telecom vs. Jay Mart Public | Interlink Telecom vs. Internet Thailand Public | Interlink Telecom vs. Jasmine 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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