Correlation Between JMT Network and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both JMT Network and TISCO Financial 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 TISCO Financial 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 TISCO Financial Group, you can compare the effects of market volatilities on JMT Network and TISCO Financial 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 TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and TISCO Financial.
Diversification Opportunities for JMT Network and TISCO Financial
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JMT and TISCO is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and TISCO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TISCO Financial Group 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 TISCO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TISCO Financial Group has no effect on the direction of JMT Network i.e., JMT Network and TISCO Financial go up and down completely randomly.
Pair Corralation between JMT Network and TISCO Financial
Assuming the 90 days trading horizon JMT Network Services is expected to under-perform the TISCO Financial. In addition to that, JMT Network is 7.23 times more volatile than TISCO Financial Group. It trades about -0.15 of its total potential returns per unit of risk. TISCO Financial Group is currently generating about 0.04 per unit of volatility. If you would invest 9,675 in TISCO Financial Group on December 5, 2024 and sell it today you would earn a total of 100.00 from holding TISCO Financial Group or generate 1.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JMT Network Services vs. TISCO Financial Group
Performance |
Timeline |
JMT Network Services |
TISCO Financial Group |
JMT Network and TISCO Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JMT Network and TISCO Financial
The main advantage of trading using opposite JMT Network and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, TISCO Financial 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 TISCO Financial will offset losses from the drop in TISCO Financial's long position.JMT Network vs. Jay Mart Public | JMT Network vs. Com7 PCL | JMT Network vs. KCE Electronics Public | JMT Network vs. Muangthai Capital Public |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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