Correlation Between KGI Securities and Jasmine International
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Jasmine International 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 KGI Securities and Jasmine International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGI Securities Public and Jasmine International Public, you can compare the effects of market volatilities on KGI Securities and Jasmine International 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 KGI Securities with a short position of Jasmine International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Jasmine International.
Diversification Opportunities for KGI Securities and Jasmine International
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KGI and Jasmine is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Jasmine International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine International and KGI Securities 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 KGI Securities Public are associated (or correlated) with Jasmine International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine International has no effect on the direction of KGI Securities i.e., KGI Securities and Jasmine International go up and down completely randomly.
Pair Corralation between KGI Securities and Jasmine International
Assuming the 90 days trading horizon KGI Securities Public is expected to under-perform the Jasmine International. But the stock apears to be less risky and, when comparing its historical volatility, KGI Securities Public is 3.58 times less risky than Jasmine International. The stock trades about -0.3 of its potential returns per unit of risk. The Jasmine International Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Jasmine International Public on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Jasmine International Public or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. Jasmine International Public
Performance |
| Timeline |
| KGI Securities Public |
| Jasmine International |
KGI Securities and Jasmine International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Jasmine International
The main advantage of trading using opposite KGI Securities and Jasmine International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Jasmine International 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 Jasmine International will offset losses from the drop in Jasmine International's long position.| KGI Securities vs. Thai Energy Storage | KGI Securities vs. Royal Orchid Hotel | KGI Securities vs. Grand Canal Land | KGI Securities vs. PRG Public |
| Jasmine International vs. Indara Insurance Public | Jasmine International vs. Regional Container Lines | Jasmine International vs. Regional Container Lines | Jasmine International vs. Mahachai Hospital 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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