Correlation Between Namwiwat Medical and JD Food
Can any of the company-specific risk be diversified away by investing in both Namwiwat Medical and JD Food 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 Namwiwat Medical and JD Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namwiwat Medical and JD Food PCL, you can compare the effects of market volatilities on Namwiwat Medical and JD Food 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 Namwiwat Medical with a short position of JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namwiwat Medical and JD Food.
Diversification Opportunities for Namwiwat Medical and JD Food
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Namwiwat and JDF is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Namwiwat Medical and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL and Namwiwat Medical 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 Namwiwat Medical are associated (or correlated) with JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Namwiwat Medical i.e., Namwiwat Medical and JD Food go up and down completely randomly.
Pair Corralation between Namwiwat Medical and JD Food
Assuming the 90 days trading horizon Namwiwat Medical is expected to under-perform the JD Food. In addition to that, Namwiwat Medical is 1.22 times more volatile than JD Food PCL. It trades about -0.1 of its total potential returns per unit of risk. JD Food PCL is currently generating about -0.11 per unit of volatility. If you would invest 210.00 in JD Food PCL on October 22, 2024 and sell it today you would lose (11.00) from holding JD Food PCL or give up 5.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Namwiwat Medical vs. JD Food PCL
Performance |
Timeline |
Namwiwat Medical |
JD Food PCL |
Namwiwat Medical and JD Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Namwiwat Medical and JD Food
The main advantage of trading using opposite Namwiwat Medical and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namwiwat Medical position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food's long position.Namwiwat Medical vs. Peerapat Technology Public | Namwiwat Medical vs. Surapon Foods Public | Namwiwat Medical vs. Mena Transport Public | Namwiwat Medical vs. Halcyon Technology Public |
JD Food vs. Thai President Foods | JD Food vs. Siri Prime Office | JD Food vs. Turnkey Communication Services | JD Food 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |