Correlation Between Stock Exchange and Jasmine Telecom
Can any of the company-specific risk be diversified away by investing in both Stock Exchange 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 Stock Exchange and Jasmine Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Jasmine Telecom Systems, you can compare the effects of market volatilities on Stock Exchange 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 Stock Exchange with a short position of Jasmine Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Jasmine Telecom.
Diversification Opportunities for Stock Exchange and Jasmine Telecom
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stock and Jasmine is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of 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 Stock Exchange 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 Stock Exchange Of 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 Stock Exchange i.e., Stock Exchange and Jasmine Telecom go up and down completely randomly.
Pair Corralation between Stock Exchange and Jasmine Telecom
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.22 times more return on investment than Jasmine Telecom. However, Stock Exchange Of is 4.6 times less risky than Jasmine Telecom. It trades about -0.27 of its potential returns per unit of risk. Jasmine Telecom Systems is currently generating about -0.32 per unit of risk. If you would invest 134,063 in Stock Exchange Of on November 18, 2024 and sell it today you would lose (6,853) from holding Stock Exchange Of or give up 5.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Jasmine Telecom Systems
Performance |
| Timeline |
Stock Exchange and Jasmine Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Jasmine Telecom Systems
Pair trading matchups for Jasmine Telecom
Pair Trading with Stock Exchange and Jasmine Telecom
The main advantage of trading using opposite Stock Exchange and Jasmine Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange 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.| Stock Exchange vs. East Coast Furnitech | Stock Exchange vs. Somboon Advance Technology | Stock Exchange vs. Earth Tech Environment | Stock Exchange vs. Thai Metal Drum |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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