Correlation Between Kingsmen CMTI and Jay Mart
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Jay Mart 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 Kingsmen CMTI and Jay Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsmen CMTI Public and Jay Mart Public, you can compare the effects of market volatilities on Kingsmen CMTI and Jay Mart 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 Kingsmen CMTI with a short position of Jay Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Jay Mart.
Diversification Opportunities for Kingsmen CMTI and Jay Mart
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kingsmen and Jay is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Jay Mart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jay Mart Public and Kingsmen CMTI 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 Kingsmen CMTI Public are associated (or correlated) with Jay Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jay Mart Public has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Jay Mart go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Jay Mart
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to generate 1.48 times more return on investment than Jay Mart. However, Kingsmen CMTI is 1.48 times more volatile than Jay Mart Public. It trades about -0.14 of its potential returns per unit of risk. Jay Mart Public is currently generating about -0.22 per unit of risk. If you would invest 135.00 in Kingsmen CMTI Public on August 25, 2024 and sell it today you would lose (15.00) from holding Kingsmen CMTI Public or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. Jay Mart Public
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Jay Mart Public |
Kingsmen CMTI and Jay Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Jay Mart
The main advantage of trading using opposite Kingsmen CMTI and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Jay Mart 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 Jay Mart will offset losses from the drop in Jay Mart's long position.| Kingsmen CMTI vs. Cho Thavee Public | Kingsmen CMTI vs. G Capital Public | Kingsmen CMTI vs. Thai Ha Public | Kingsmen CMTI vs. Panjawattana Plastic Public |
| Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. KCE Electronics Public | Jay Mart vs. Singer Thailand 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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