Correlation Between Jasmine International and Muangthai Capital

Can any of the company-specific risk be diversified away by investing in both Jasmine International and Muangthai Capital 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 Jasmine International and Muangthai Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jasmine International Public and Muangthai Capital Public, you can compare the effects of market volatilities on Jasmine International and Muangthai Capital 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 Jasmine International with a short position of Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Muangthai Capital.

Diversification Opportunities for Jasmine International and Muangthai Capital

0.08

Correlation Coefficient

Jasmine International  Muangthai Capital

Significant diversification

The 3 months correlation between Jasmine and Muangthai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and Muangthai Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muangthai Capital Public and Jasmine International 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 Jasmine International Public are associated (or correlated) with Muangthai Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muangthai Capital Public has no effect on the direction of Jasmine International i.e., Jasmine International and Muangthai Capital go up and down completely randomly.

Pair Corralation between Jasmine International and Muangthai Capital

Assuming the 90 days trading horizon Jasmine International is expected to generate 19.44 times less return on investment than Muangthai Capital. But when comparing it to its historical volatility, Jasmine International Public is 18.02 times less risky than Muangthai Capital. It trades about 0.05 of its potential returns per unit of risk. Muangthai Capital Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  4,454  in Muangthai Capital Public on September 13, 2024 and sell it today you would earn a total of  496.00  from holding Muangthai Capital Public or generate 11.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jasmine International Public  vs.  Muangthai Capital Public

Jasmine International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jasmine International Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Muangthai Capital Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Muangthai Capital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Muangthai Capital is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Jasmine International and Muangthai Capital

The main advantage of trading using opposite Jasmine International and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, Muangthai Capital 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 Muangthai Capital will offset losses from the drop in Muangthai Capital's long position.

The idea behind Jasmine International Public and Muangthai Capital 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.