Correlation Between Silicon Craft and Jasmine Telecom
Can any of the company-specific risk be diversified away by investing in both Silicon Craft 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 Silicon Craft and Jasmine Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and Jasmine Telecom Systems, you can compare the effects of market volatilities on Silicon Craft 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 Silicon Craft with a short position of Jasmine Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Jasmine Telecom.
Diversification Opportunities for Silicon Craft and Jasmine Telecom
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silicon and Jasmine is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology 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 Silicon Craft 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 Silicon Craft Technology 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 Silicon Craft i.e., Silicon Craft and Jasmine Telecom go up and down completely randomly.
Pair Corralation between Silicon Craft and Jasmine Telecom
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Jasmine Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Silicon Craft Technology is 1.69 times less risky than Jasmine Telecom. The stock trades about -0.08 of its potential returns per unit of risk. The Jasmine Telecom Systems is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,250 in Jasmine Telecom Systems on September 3, 2024 and sell it today you would earn a total of 3,225 from holding Jasmine Telecom Systems or generate 99.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. Jasmine Telecom Systems
Performance |
| Timeline |
| Silicon Craft Technology |
| Jasmine Telecom Systems |
Silicon Craft and Jasmine Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Jasmine Telecom
The main advantage of trading using opposite Silicon Craft and Jasmine Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft 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.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand 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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