Correlation Between Jay Mart and Professional Waste
Can any of the company-specific risk be diversified away by investing in both Jay Mart and Professional Waste 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 Professional Waste 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 Professional Waste Technology, you can compare the effects of market volatilities on Jay Mart and Professional Waste 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 Professional Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Professional Waste.
Diversification Opportunities for Jay Mart and Professional Waste
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jay and Professional is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Professional Waste Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Professional Waste 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 Professional Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Professional Waste has no effect on the direction of Jay Mart i.e., Jay Mart and Professional Waste go up and down completely randomly.
Pair Corralation between Jay Mart and Professional Waste
Assuming the 90 days trading horizon Jay Mart Public is expected to generate 0.13 times more return on investment than Professional Waste. However, Jay Mart Public is 7.48 times less risky than Professional Waste. It trades about -0.21 of its potential returns per unit of risk. Professional Waste Technology is currently generating about -0.16 per unit of risk. If you would invest 1,540 in Jay Mart Public on September 24, 2024 and sell it today you would lose (270.00) from holding Jay Mart Public or give up 17.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.56% |
Values | Daily Returns |
Jay Mart Public vs. Professional Waste Technology
Performance |
Timeline |
Jay Mart Public |
Professional Waste |
Jay Mart and Professional Waste Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jay Mart and Professional Waste
The main advantage of trading using opposite Jay Mart and Professional Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart position performs unexpectedly, Professional Waste 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 Professional Waste will offset losses from the drop in Professional Waste'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 |
Professional Waste vs. Bhiraj Office Leasehold | Professional Waste vs. Communication System Solution | Professional Waste vs. Turnkey Communication Services | Professional Waste vs. Asia Medical Agricultural |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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