Correlation Between Jasmine Telecom and Mena Transport
Can any of the company-specific risk be diversified away by investing in both Jasmine Telecom and Mena Transport 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 Mena Transport 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 Mena Transport Public, you can compare the effects of market volatilities on Jasmine Telecom and Mena Transport 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 Mena Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine Telecom and Mena Transport.
Diversification Opportunities for Jasmine Telecom and Mena Transport
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jasmine and Mena is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine Telecom Systems and Mena Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mena Transport 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 Mena Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mena Transport Public has no effect on the direction of Jasmine Telecom i.e., Jasmine Telecom and Mena Transport go up and down completely randomly.
Pair Corralation between Jasmine Telecom and Mena Transport
Assuming the 90 days trading horizon Jasmine Telecom Systems is expected to under-perform the Mena Transport. In addition to that, Jasmine Telecom is 1.29 times more volatile than Mena Transport Public. It trades about -0.05 of its total potential returns per unit of risk. Mena Transport Public is currently generating about 0.04 per unit of volatility. If you would invest 122.00 in Mena Transport Public on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Mena Transport Public or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine Telecom Systems vs. Mena Transport Public
Performance |
| Timeline |
| Jasmine Telecom Systems |
| Mena Transport Public |
Jasmine Telecom and Mena Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine Telecom and Mena Transport
The main advantage of trading using opposite Jasmine Telecom and Mena Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine Telecom position performs unexpectedly, Mena Transport 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 Mena Transport will offset losses from the drop in Mena Transport'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 |
| Mena Transport vs. Namyong Terminal PCL | Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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