Correlation Between Jay Mart and CP ALL

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

Diversification Opportunities for Jay Mart and CP ALL

0.47

Correlation Coefficient

Jay Mart  CP ALL

Very weak diversification

The 3 months correlation between Jay and CPALL-R is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL 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 CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Jay Mart i.e., Jay Mart and CP ALL go up and down completely randomly.

Pair Corralation between Jay Mart and CP ALL

If you would invest  0.00  in Jay Mart Public on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Jay Mart Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	2.44%
Values	Daily Returns

Jay Mart Public  vs.  CP ALL Public

Jay Mart Public

Risk-Adjusted Performance

OK

Over the last 90 days Jay Mart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Jay Mart reported solid returns over the last few months and may actually be approaching a breakup point.

CP ALL Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days CP ALL Public has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Jay Mart and CP ALL

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

The idea behind Jay Mart Public and CP ALL 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.