Correlation Between Jasmine International and True Public

Can any of the company-specific risk be diversified away by investing in both Jasmine International and True Public 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 True Public 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 True Public, you can compare the effects of market volatilities on Jasmine International and True Public 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 True Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and True Public.

Diversification Opportunities for Jasmine International and True Public

0.76

Correlation Coefficient

Jasmine International  True Public

Poor diversification

The 3 months correlation between Jasmine and True is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and True Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True Public 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 True Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Public has no effect on the direction of Jasmine International i.e., Jasmine International and True Public go up and down completely randomly.

Pair Corralation between Jasmine International and True Public

Assuming the 90 days trading horizon Jasmine International Public is expected to generate 1.77 times more return on investment than True Public. However, Jasmine International is 1.77 times more volatile than True Public. It trades about -0.02 of its potential returns per unit of risk. True Public is currently generating about -0.06 per unit of risk. If you would invest  154.00  in Jasmine International Public on April 22, 2025 and sell it today you would lose (11.00) from holding Jasmine International Public or give up 7.14% of portfolio value over 90 days.

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

Jasmine International Public  vs.  True Public

Jasmine International

Risk-Adjusted Performance

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.

True Public

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Jasmine International and True Public

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

The idea behind Jasmine International Public and True 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.