Correlation Between Muangthai Capital and JMT Network
Can any of the company-specific risk be diversified away by investing in both Muangthai Capital 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 Muangthai Capital and JMT Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muangthai Capital Public and JMT Network Services, you can compare the effects of market volatilities on Muangthai Capital 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 Muangthai Capital with a short position of JMT Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muangthai Capital and JMT Network.
Diversification Opportunities for Muangthai Capital and JMT Network
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Muangthai and JMT is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Muangthai Capital 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 Muangthai Capital 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 Muangthai Capital 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 Muangthai Capital i.e., Muangthai Capital and JMT Network go up and down completely randomly.
Pair Corralation between Muangthai Capital and JMT Network
Assuming the 90 days trading horizon Muangthai Capital Public is expected to generate 13.77 times more return on investment than JMT Network. However, Muangthai Capital is 13.77 times more volatile than JMT Network Services. It trades about 0.05 of its potential returns per unit of risk. JMT Network Services is currently generating about -0.03 per unit of risk. If you would invest 3,957 in Muangthai Capital Public on August 28, 2024 and sell it today you would earn a total of 1,068 from holding Muangthai Capital Public or generate 26.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
Muangthai Capital Public vs. JMT Network Services
Performance |
| Timeline |
| Muangthai Capital Public |
| JMT Network Services |
Muangthai Capital and JMT Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muangthai Capital and JMT Network
The main advantage of trading using opposite Muangthai Capital and JMT Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muangthai Capital 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.| Muangthai Capital vs. Srisawad Power 1979 | Muangthai Capital vs. Gulf Energy Development | Muangthai Capital vs. Krungthai Card PCL | Muangthai Capital vs. Carabao Group Public |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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