Correlation Between Jay Mart and MC Group
Can any of the company-specific risk be diversified away by investing in both Jay Mart and MC Group 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 MC Group 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 MC Group Public, you can compare the effects of market volatilities on Jay Mart and MC Group 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 MC Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and MC Group.
Diversification Opportunities for Jay Mart and MC Group
Modest diversification
The 3 months correlation between Jay and MC Group is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and MC Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Group 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 MC Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Group Public has no effect on the direction of Jay Mart i.e., Jay Mart and MC Group go up and down completely randomly.
Pair Corralation between Jay Mart and MC Group
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the MC Group. In addition to that, Jay Mart is 1.18 times more volatile than MC Group Public. It trades about -0.23 of its total potential returns per unit of risk. MC Group Public is currently generating about 0.12 per unit of volatility. If you would invest 949.00 in MC Group Public on December 4, 2024 and sell it today you would earn a total of 46.00 from holding MC Group Public or generate 4.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jay Mart Public vs. MC Group Public
Performance |
Timeline |
Jay Mart Public |
MC Group Public |
Jay Mart and MC Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jay Mart and MC Group
The main advantage of trading using opposite Jay Mart and MC Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, MC Group 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 MC Group will offset losses from the drop in MC Group's long position.Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. KCE Electronics Public | Jay Mart vs. Singer Thailand Public |
MC Group vs. Home Product Center | MC Group vs. LPN Development Public | MC Group vs. Mega Lifesciences Public | MC Group vs. Ichitan Group Public |
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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