Correlation Between Jay Mart and SVI Public
Can any of the company-specific risk be diversified away by investing in both Jay Mart and SVI Public 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 Jay Mart and SVI Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jay Mart Public and SVI Public, you can compare the effects of market volatilities on Jay Mart and SVI Public 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 Jay Mart with a short position of SVI Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and SVI Public.
Diversification Opportunities for Jay Mart and SVI Public
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jay and SVI is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and SVI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVI Public and Jay Mart 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 Jay Mart Public are associated (or correlated) with SVI Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVI Public has no effect on the direction of Jay Mart i.e., Jay Mart and SVI Public go up and down completely randomly.
Pair Corralation between Jay Mart and SVI Public
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the SVI Public. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 1.54 times less risky than SVI Public. The stock trades about -0.14 of its potential returns per unit of risk. The SVI Public is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 680.00 in SVI Public on September 24, 2024 and sell it today you would earn a total of 45.00 from holding SVI Public or generate 6.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jay Mart Public vs. SVI Public
Performance |
Timeline |
Jay Mart Public |
SVI Public |
Jay Mart and SVI Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jay Mart and SVI Public
The main advantage of trading using opposite Jay Mart and SVI Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, SVI Public 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 SVI Public will offset losses from the drop in SVI Public's long position.Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. KCE Electronics Public | Jay Mart vs. Singer Thailand Public |
SVI Public vs. Jay Mart Public | SVI Public vs. Interlink Telecom Public | SVI Public vs. Hana Microelectronics Public | SVI Public vs. Forth 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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