Correlation Between Jasmine International and LPN Development
Can any of the company-specific risk be diversified away by investing in both Jasmine International and LPN Development 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 LPN Development 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 LPN Development Public, you can compare the effects of market volatilities on Jasmine International and LPN Development 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 LPN Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and LPN Development.
Diversification Opportunities for Jasmine International and LPN Development
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jasmine and LPN is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and LPN Development Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPN Development 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 LPN Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPN Development Public has no effect on the direction of Jasmine International i.e., Jasmine International and LPN Development go up and down completely randomly.
Pair Corralation between Jasmine International and LPN Development
Assuming the 90 days trading horizon Jasmine International Public is expected to under-perform the LPN Development. In addition to that, Jasmine International is 1.51 times more volatile than LPN Development Public. It trades about -0.24 of its total potential returns per unit of risk. LPN Development Public is currently generating about -0.3 per unit of volatility. If you would invest 284.00 in LPN Development Public on December 1, 2024 and sell it today you would lose (66.00) from holding LPN Development Public or give up 23.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jasmine International Public vs. LPN Development Public
Performance |
Timeline |
Jasmine International |
LPN Development Public |
Jasmine International and LPN Development Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jasmine International and LPN Development
The main advantage of trading using opposite Jasmine International and LPN Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, LPN Development 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 LPN Development will offset losses from the drop in LPN Development's long position.Jasmine International vs. True Public | Jasmine International vs. Land and Houses | Jasmine International vs. Advanced Info Service | Jasmine International vs. Krung Thai Bank |
LPN Development vs. Land and Houses | LPN Development vs. AP Public | LPN Development vs. Quality Houses Public | LPN Development vs. Siri Prime Office |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |