Correlation Between JMT Network and Ngern Tid

Can any of the company-specific risk be diversified away by investing in both JMT Network and Ngern Tid 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 JMT Network and Ngern Tid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JMT Network Services and Ngern Tid Lor, you can compare the effects of market volatilities on JMT Network and Ngern Tid 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 JMT Network with a short position of Ngern Tid. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Ngern Tid.

Diversification Opportunities for JMT Network and Ngern Tid

0.12

Correlation Coefficient

JMT Network  Ngern Tid

Average diversification

The 3 months correlation between JMT and Ngern is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Ngern Tid Lor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngern Tid Lor and JMT Network 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 JMT Network Services are associated (or correlated) with Ngern Tid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngern Tid Lor has no effect on the direction of JMT Network i.e., JMT Network and Ngern Tid go up and down completely randomly.

Pair Corralation between JMT Network and Ngern Tid

Assuming the 90 days trading horizon JMT Network is expected to generate 508.64 times less return on investment than Ngern Tid. But when comparing it to its historical volatility, JMT Network Services is 18.18 times less risky than Ngern Tid. It trades about 0.0 of its potential returns per unit of risk. Ngern Tid Lor is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,080  in Ngern Tid Lor on September 24, 2024 and sell it today you would lose (550.00) from holding Ngern Tid Lor or give up 26.44% of portfolio value over 90 days.

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

JMT Network Services  vs.  Ngern Tid Lor

JMT Network Services

Risk-Adjusted Performance

0 of 100

Weak

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

Ngern Tid Lor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ngern Tid Lor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with JMT Network and Ngern Tid

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

The idea behind JMT Network Services and Ngern Tid Lor 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.