Correlation Between Taokaenoi Food and Jay Mart
Can any of the company-specific risk be diversified away by investing in both Taokaenoi Food 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 Taokaenoi Food and Jay Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taokaenoi Food Marketing and Jay Mart Public, you can compare the effects of market volatilities on Taokaenoi Food 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 Taokaenoi Food with a short position of Jay Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taokaenoi Food and Jay Mart.
Diversification Opportunities for Taokaenoi Food and Jay Mart
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Taokaenoi and Jay is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Taokaenoi Food Marketing 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 Taokaenoi Food 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 Taokaenoi Food Marketing 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 Taokaenoi Food i.e., Taokaenoi Food and Jay Mart go up and down completely randomly.
Pair Corralation between Taokaenoi Food and Jay Mart
Assuming the 90 days trading horizon Taokaenoi Food Marketing is expected to generate 17.68 times more return on investment than Jay Mart. However, Taokaenoi Food is 17.68 times more volatile than Jay Mart Public. It trades about 0.06 of its potential returns per unit of risk. Jay Mart Public is currently generating about 0.01 per unit of risk. If you would invest 1,063 in Taokaenoi Food Marketing on August 28, 2024 and sell it today you would lose (203.00) from holding Taokaenoi Food Marketing or give up 19.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taokaenoi Food Marketing vs. Jay Mart Public
Performance |
| Timeline |
| Taokaenoi Food Marketing |
| Jay Mart Public |
Taokaenoi Food and Jay Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taokaenoi Food and Jay Mart
The main advantage of trading using opposite Taokaenoi Food and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taokaenoi Food 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.| Taokaenoi Food vs. CP ALL Public | Taokaenoi Food vs. Thai Union Group | Taokaenoi Food vs. Minor International Public | Taokaenoi Food vs. Central Pattana Public |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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