Correlation Between Ngern Tid and Jay Mart
Can any of the company-specific risk be diversified away by investing in both Ngern Tid and Jay Mart 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 Ngern Tid and Jay Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ngern Tid Lor and Jay Mart Public, you can compare the effects of market volatilities on Ngern Tid and Jay Mart 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 Ngern Tid with a short position of Jay Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ngern Tid and Jay Mart.
Diversification Opportunities for Ngern Tid and Jay Mart
Average diversification
The 3 months correlation between Ngern and Jay is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ngern Tid Lor and Jay Mart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jay Mart Public and Ngern Tid 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 Ngern Tid Lor are associated (or correlated) with Jay Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jay Mart Public has no effect on the direction of Ngern Tid i.e., Ngern Tid and Jay Mart go up and down completely randomly.
Pair Corralation between Ngern Tid and Jay Mart
Assuming the 90 days trading horizon Ngern Tid Lor is expected to generate 1.04 times more return on investment than Jay Mart. However, Ngern Tid is 1.04 times more volatile than Jay Mart Public. It trades about -0.02 of its potential returns per unit of risk. Jay Mart Public is currently generating about -0.14 per unit of risk. If you would invest 1,830 in Ngern Tid Lor on August 28, 2024 and sell it today you would lose (70.00) from holding Ngern Tid Lor or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Ngern Tid Lor vs. Jay Mart Public
Performance |
| Timeline |
| Ngern Tid Lor |
| Jay Mart Public |
Ngern Tid and Jay Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ngern Tid and Jay Mart
The main advantage of trading using opposite Ngern Tid and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ngern Tid position performs unexpectedly, Jay Mart 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 Jay Mart will offset losses from the drop in Jay Mart's long position.The idea behind Ngern Tid Lor and Jay Mart Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. Singer Thailand Public | Jay Mart vs. Hana Microelectronics 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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