Correlation Between KGI Securities and JMT Network
Can any of the company-specific risk be diversified away by investing in both KGI Securities and JMT Network 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 JMT Network 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 JMT Network Services, you can compare the effects of market volatilities on KGI Securities and JMT Network 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 JMT Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and JMT Network.
Diversification Opportunities for KGI Securities and JMT Network
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between KGI and JMT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and JMT Network Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JMT Network Services 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 JMT Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JMT Network Services has no effect on the direction of KGI Securities i.e., KGI Securities and JMT Network go up and down completely randomly.
Pair Corralation between KGI Securities and JMT Network
Assuming the 90 days trading horizon KGI Securities Public is expected to generate 0.18 times more return on investment than JMT Network. However, KGI Securities Public is 5.65 times less risky than JMT Network. It trades about -0.04 of its potential returns per unit of risk. JMT Network Services is currently generating about -0.23 per unit of risk. If you would invest 420.00 in KGI Securities Public on November 29, 2024 and sell it today you would lose (2.00) from holding KGI Securities Public or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. JMT Network Services
Performance |
| Timeline |
| KGI Securities Public |
| JMT Network Services |
KGI Securities and JMT Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and JMT Network
The main advantage of trading using opposite KGI Securities and JMT Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, JMT Network 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 JMT Network will offset losses from the drop in JMT Network's long position.| KGI Securities vs. Bumrungrad Hospital PCL | KGI Securities vs. Globlex Holding Management | KGI Securities vs. MFC Asset Management | KGI Securities vs. AIM Industrial Growth |
| JMT Network vs. Jay Mart Public | JMT Network vs. Com7 PCL | JMT Network vs. KCE Electronics Public | JMT Network vs. Muangthai Capital 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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