Correlation Between Jasmine Telecom and Trinity Watthana

Can any of the company-specific risk be diversified away by investing in both Jasmine Telecom and Trinity Watthana 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 Jasmine Telecom and Trinity Watthana into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jasmine Telecom Systems and Trinity Watthana Public, you can compare the effects of market volatilities on Jasmine Telecom and Trinity Watthana 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 Jasmine Telecom with a short position of Trinity Watthana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine Telecom and Trinity Watthana.

Diversification Opportunities for Jasmine Telecom and Trinity Watthana

-0.23

Correlation Coefficient

Jasmine Telecom  Trinity Watthana

Very good diversification

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

Pair Corralation between Jasmine Telecom and Trinity Watthana

Assuming the 90 days trading horizon Jasmine Telecom Systems is expected to under-perform the Trinity Watthana. But the stock apears to be less risky and, when comparing its historical volatility, Jasmine Telecom Systems is 1.21 times less risky than Trinity Watthana. The stock trades about -0.04 of its potential returns per unit of risk. The Trinity Watthana Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  368.00  in Trinity Watthana Public on October 26, 2024 and sell it today you would lose (18.00) from holding Trinity Watthana Public or give up 4.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Jasmine Telecom Systems  vs.  Trinity Watthana Public

Jasmine Telecom Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jasmine Telecom Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Trinity Watthana Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trinity Watthana Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Trinity Watthana is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jasmine Telecom and Trinity Watthana

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

The idea behind Jasmine Telecom Systems and Trinity Watthana 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.