Correlation Between Jasmine International and MFC Nichada

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

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

Diversification Opportunities for Jasmine International and MFC Nichada

-0.57

Correlation Coefficient

Jasmine International  MFC Nichada

Excellent diversification

The 3 months correlation between Jasmine and MFC is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and MFC Nichada Thani Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Nichada Thani and Jasmine International 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 International Public are associated (or correlated) with MFC Nichada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Nichada Thani has no effect on the direction of Jasmine International i.e., Jasmine International and MFC Nichada go up and down completely randomly.

Pair Corralation between Jasmine International and MFC Nichada

Assuming the 90 days trading horizon Jasmine International Public is expected to under-perform the MFC Nichada. In addition to that, Jasmine International is 2.12 times more volatile than MFC Nichada Thani Property. It trades about -0.02 of its total potential returns per unit of risk. MFC Nichada Thani Property is currently generating about 0.04 per unit of volatility. If you would invest  190.00  in MFC Nichada Thani Property on April 23, 2025 and sell it today you would earn a total of  5.00  from holding MFC Nichada Thani Property or generate 2.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

Jasmine International Public  vs.  MFC Nichada Thani Property

Jasmine International

Risk-Adjusted Performance

Very Weak

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

MFC Nichada Thani

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MFC Nichada Thani Property are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, MFC Nichada is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Jasmine International and MFC Nichada

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

The idea behind Jasmine International Public and MFC Nichada Thani Property 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.