Correlation Between Navakij Insurance and Jasmine Telecom
Can any of the company-specific risk be diversified away by investing in both Navakij Insurance and Jasmine Telecom 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 Navakij Insurance and Jasmine Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Navakij Insurance and Jasmine Telecom Systems, you can compare the effects of market volatilities on Navakij Insurance and Jasmine Telecom 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 Navakij Insurance with a short position of Jasmine Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navakij Insurance and Jasmine Telecom.
Diversification Opportunities for Navakij Insurance and Jasmine Telecom
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Navakij and Jasmine is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Navakij Insurance and Jasmine Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine Telecom Systems and Navakij Insurance 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 The Navakij Insurance are associated (or correlated) with Jasmine Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine Telecom Systems has no effect on the direction of Navakij Insurance i.e., Navakij Insurance and Jasmine Telecom go up and down completely randomly.
Pair Corralation between Navakij Insurance and Jasmine Telecom
Assuming the 90 days trading horizon Navakij Insurance is expected to generate 2.51 times less return on investment than Jasmine Telecom. But when comparing it to its historical volatility, The Navakij Insurance is 1.96 times less risky than Jasmine Telecom. It trades about 0.13 of its potential returns per unit of risk. Jasmine Telecom Systems is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,900 in Jasmine Telecom Systems on October 24, 2024 and sell it today you would earn a total of 550.00 from holding Jasmine Telecom Systems or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Navakij Insurance vs. Jasmine Telecom Systems
Performance |
| Timeline |
| Navakij Insurance |
| Jasmine Telecom Systems |
Navakij Insurance and Jasmine Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navakij Insurance and Jasmine Telecom
The main advantage of trading using opposite Navakij Insurance and Jasmine Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navakij Insurance position performs unexpectedly, Jasmine Telecom 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 Telecom will offset losses from the drop in Jasmine Telecom's long position.| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity Public |
| Jasmine Telecom vs. Jay Mart Public | Jasmine Telecom vs. Jasmine International Public | Jasmine Telecom vs. KCE Electronics Public | Jasmine Telecom vs. Delta Electronics 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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