Correlation Between Jasmine Telecom and TOA PAINT
Can any of the company-specific risk be diversified away by investing in both Jasmine Telecom and TOA PAINT 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 TOA PAINT 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 TOA PAINT, you can compare the effects of market volatilities on Jasmine Telecom and TOA PAINT 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 TOA PAINT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine Telecom and TOA PAINT.
Diversification Opportunities for Jasmine Telecom and TOA PAINT
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jasmine and TOA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine Telecom Systems and TOA PAINT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOA PAINT 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 TOA PAINT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOA PAINT has no effect on the direction of Jasmine Telecom i.e., Jasmine Telecom and TOA PAINT go up and down completely randomly.
Pair Corralation between Jasmine Telecom and TOA PAINT
Assuming the 90 days trading horizon Jasmine Telecom Systems is expected to generate 0.88 times more return on investment than TOA PAINT. However, Jasmine Telecom Systems is 1.14 times less risky than TOA PAINT. It trades about -0.29 of its potential returns per unit of risk. TOA PAINT is currently generating about -0.29 per unit of risk. If you would invest 6,425 in Jasmine Telecom Systems on November 3, 2024 and sell it today you would lose (1,025) from holding Jasmine Telecom Systems or give up 15.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine Telecom Systems vs. TOA PAINT
Performance |
| Timeline |
| Jasmine Telecom Systems |
| TOA PAINT |
Jasmine Telecom and TOA PAINT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine Telecom and TOA PAINT
The main advantage of trading using opposite Jasmine Telecom and TOA PAINT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine Telecom position performs unexpectedly, TOA PAINT 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 TOA PAINT will offset losses from the drop in TOA PAINT'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 |
| TOA PAINT vs. Bangkok Sheet Metal | TOA PAINT vs. MFC Asset Management | TOA PAINT vs. WHA Industrial Leasehold | TOA PAINT vs. TMC Industrial 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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