Correlation Between Jasmine Telecom and KCE Electronics
Can any of the company-specific risk be diversified away by investing in both Jasmine Telecom and KCE Electronics 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 KCE Electronics 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 KCE Electronics Public, you can compare the effects of market volatilities on Jasmine Telecom and KCE Electronics 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 KCE Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine Telecom and KCE Electronics.
Diversification Opportunities for Jasmine Telecom and KCE Electronics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jasmine and KCE is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine Telecom Systems and KCE Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCE Electronics 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 KCE Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCE Electronics Public has no effect on the direction of Jasmine Telecom i.e., Jasmine Telecom and KCE Electronics go up and down completely randomly.
Pair Corralation between Jasmine Telecom and KCE Electronics
Assuming the 90 days trading horizon Jasmine Telecom Systems is expected to generate 1.78 times more return on investment than KCE Electronics. However, Jasmine Telecom is 1.78 times more volatile than KCE Electronics Public. It trades about 0.08 of its potential returns per unit of risk. KCE Electronics Public is currently generating about -0.05 per unit of risk. If you would invest 2,925 in Jasmine Telecom Systems on September 12, 2024 and sell it today you would earn a total of 3,975 from holding Jasmine Telecom Systems or generate 135.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine Telecom Systems vs. KCE Electronics Public
Performance |
| Timeline |
| Jasmine Telecom Systems |
| KCE Electronics Public |
Jasmine Telecom and KCE Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine Telecom and KCE Electronics
The main advantage of trading using opposite Jasmine Telecom and KCE Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine Telecom position performs unexpectedly, KCE Electronics 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 KCE Electronics will offset losses from the drop in KCE Electronics' long position.| Jasmine Telecom vs. KCE Electronics Public | Jasmine Telecom vs. Land and Houses | Jasmine Telecom vs. Delta Electronics Public | Jasmine Telecom vs. The Siam Cement |
| KCE Electronics vs. Hana Microelectronics Public | KCE Electronics vs. Kasikornbank Public | KCE Electronics vs. Land and Houses | KCE Electronics vs. Indorama Ventures PCL |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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