Correlation Between JMT Network and Siam Global

Can any of the company-specific risk be diversified away by investing in both JMT Network and Siam Global 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 JMT Network and Siam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JMT Network Services and Siam Global House, you can compare the effects of market volatilities on JMT Network and Siam Global 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 JMT Network with a short position of Siam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Siam Global.

Diversification Opportunities for JMT Network and Siam Global

0.23

Correlation Coefficient

JMT Network  Siam Global

Modest diversification

The 3 months correlation between JMT and Siam is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Siam Global House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Global House and JMT Network 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 JMT Network Services are associated (or correlated) with Siam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Global House has no effect on the direction of JMT Network i.e., JMT Network and Siam Global go up and down completely randomly.

Pair Corralation between JMT Network and Siam Global

Assuming the 90 days trading horizon JMT Network Services is expected to under-perform the Siam Global. In addition to that, JMT Network is 2.08 times more volatile than Siam Global House. It trades about -0.05 of its total potential returns per unit of risk. Siam Global House is currently generating about -0.02 per unit of volatility. If you would invest  1,856  in Siam Global House on October 11, 2024 and sell it today you would lose (476.00) from holding Siam Global House or give up 25.65% of portfolio value over 90 days.

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

JMT Network Services  vs.  Siam Global House

JMT Network Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JMT Network Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, JMT Network is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Siam Global House

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siam Global House has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with JMT Network and Siam Global

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

The idea behind JMT Network Services and Siam Global House 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.