Correlation Between City Sports and Jasmine International
Can any of the company-specific risk be diversified away by investing in both City Sports and Jasmine International 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 City Sports and Jasmine International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Sports and and Jasmine International Public, you can compare the effects of market volatilities on City Sports and Jasmine International 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 City Sports with a short position of Jasmine International. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Sports and Jasmine International.
Diversification Opportunities for City Sports and Jasmine International
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Jasmine is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding City Sports and and Jasmine International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine International and City Sports 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 City Sports and are associated (or correlated) with Jasmine International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine International has no effect on the direction of City Sports i.e., City Sports and Jasmine International go up and down completely randomly.
Pair Corralation between City Sports and Jasmine International
Assuming the 90 days trading horizon City Sports and is expected to generate 0.69 times more return on investment than Jasmine International. However, City Sports and is 1.44 times less risky than Jasmine International. It trades about -0.11 of its potential returns per unit of risk. Jasmine International Public is currently generating about -0.38 per unit of risk. If you would invest 9,025 in City Sports and on December 2, 2024 and sell it today you would lose (325.00) from holding City Sports and or give up 3.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
City Sports and vs. Jasmine International Public
Performance |
Timeline |
City Sports |
Jasmine International |
City Sports and Jasmine International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with City Sports and Jasmine International
The main advantage of trading using opposite City Sports and Jasmine International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Sports position performs unexpectedly, Jasmine International 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 Jasmine International will offset losses from the drop in Jasmine International's long position.City Sports vs. Chiangmai Frozen Foods | City Sports vs. Dynasty Ceramic Public | City Sports vs. Castle Peak Holdings | City Sports vs. CPL Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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