Correlation Between Jasmine International and Interlink Telecom

Can any of the company-specific risk be diversified away by investing in both Jasmine International and Interlink Telecom 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 Interlink Telecom 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 Interlink Telecom Public, you can compare the effects of market volatilities on Jasmine International and Interlink Telecom 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 Interlink Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Interlink Telecom.

Diversification Opportunities for Jasmine International and Interlink Telecom

-0.45

Correlation Coefficient

Jasmine International  Interlink Telecom

Very good diversification

The 3 months correlation between Jasmine and Interlink is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom 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 Interlink Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of Jasmine International i.e., Jasmine International and Interlink Telecom go up and down completely randomly.

Pair Corralation between Jasmine International and Interlink Telecom

Assuming the 90 days trading horizon Jasmine International Public is expected to generate 1.51 times more return on investment than Interlink Telecom. However, Jasmine International is 1.51 times more volatile than Interlink Telecom Public. It trades about 0.02 of its potential returns per unit of risk. Interlink Telecom Public is currently generating about -0.03 per unit of risk. If you would invest  228.00  in Jasmine International Public on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Jasmine International Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jasmine International Public  vs.  Interlink Telecom 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 somewhat strong fundamental drivers, Jasmine International is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Interlink Telecom Public

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Interlink Telecom Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Interlink Telecom may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jasmine International and Interlink Telecom

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

The idea behind Jasmine International Public and Interlink Telecom 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.