Correlation Between Osotspa Public and JD Food
Can any of the company-specific risk be diversified away by investing in both Osotspa Public and JD Food 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 Osotspa Public and JD Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osotspa Public and JD Food PCL, you can compare the effects of market volatilities on Osotspa Public and JD Food 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 Osotspa Public with a short position of JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osotspa Public and JD Food.
Diversification Opportunities for Osotspa Public and JD Food
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osotspa and JDF is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Osotspa Public and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL and Osotspa Public 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 Osotspa Public are associated (or correlated) with JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Osotspa Public i.e., Osotspa Public and JD Food go up and down completely randomly.
Pair Corralation between Osotspa Public and JD Food
Assuming the 90 days trading horizon Osotspa Public is expected to generate 1.5 times more return on investment than JD Food. However, Osotspa Public is 1.5 times more volatile than JD Food PCL. It trades about 0.17 of its potential returns per unit of risk. JD Food PCL is currently generating about -0.21 per unit of risk. If you would invest 2,050 in Osotspa Public on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Osotspa Public or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osotspa Public vs. JD Food PCL
Performance |
| Timeline |
| Osotspa Public |
| JD Food PCL |
Osotspa Public and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osotspa Public and JD Food
The main advantage of trading using opposite Osotspa Public and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osotspa Public position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food's long position.| Osotspa Public vs. Carabao Group Public | Osotspa Public vs. CP ALL Public | Osotspa Public vs. Minor International Public | Osotspa Public vs. Gulf Energy Development |
| JD Food vs. Thai Union Group | JD Food vs. Thai Union Group | JD Food vs. Thai President Foods | JD Food vs. Thai Vegetable Oil |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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