Correlation Between Team Precision and Jasmine International
Can any of the company-specific risk be diversified away by investing in both Team Precision and Jasmine International 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 Team Precision and Jasmine International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Team Precision Public and Jasmine International Public, you can compare the effects of market volatilities on Team Precision and Jasmine International 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 Team Precision with a short position of Jasmine International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Team Precision and Jasmine International.
Diversification Opportunities for Team Precision and Jasmine International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Team and Jasmine is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Team Precision Public and Jasmine International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine International and Team Precision 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 Team Precision Public are associated (or correlated) with Jasmine International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine International has no effect on the direction of Team Precision i.e., Team Precision and Jasmine International go up and down completely randomly.
Pair Corralation between Team Precision and Jasmine International
Assuming the 90 days trading horizon Team Precision Public is expected to generate 15.08 times more return on investment than Jasmine International. However, Team Precision is 15.08 times more volatile than Jasmine International Public. It trades about 0.05 of its potential returns per unit of risk. Jasmine International Public is currently generating about 0.08 per unit of risk. If you would invest 503.00 in Team Precision Public on September 12, 2024 and sell it today you would lose (229.00) from holding Team Precision Public or give up 45.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Team Precision Public vs. Jasmine International Public
Performance |
| Timeline |
| Team Precision Public |
| Jasmine International |
Team Precision and Jasmine International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Team Precision and Jasmine International
The main advantage of trading using opposite Team Precision and Jasmine International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Team Precision position performs unexpectedly, Jasmine International 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 International will offset losses from the drop in Jasmine International's long position.| Team Precision vs. KCE Electronics Public | Team Precision vs. Land and Houses | Team Precision vs. Delta Electronics Public | Team Precision vs. The Siam Cement |
| Jasmine International vs. Synnex Public | Jasmine International vs. SVI Public | Jasmine International vs. Interlink Communication Public | Jasmine International vs. The Erawan Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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