Correlation Between JMT Network and Chularat Hospital

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

Diversification Opportunities for JMT Network and Chularat Hospital

-0.09

Correlation Coefficient

JMT Network  Chularat Hospital

Good diversification

The 3 months correlation between JMT and Chularat is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital Public 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 Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of JMT Network i.e., JMT Network and Chularat Hospital go up and down completely randomly.

Pair Corralation between JMT Network and Chularat Hospital

Assuming the 90 days trading horizon JMT Network Services is expected to generate 3.5 times more return on investment than Chularat Hospital. However, JMT Network is 3.5 times more volatile than Chularat Hospital Public. It trades about 0.0 of its potential returns per unit of risk. Chularat Hospital Public is currently generating about -0.09 per unit of risk. If you would invest  2,111  in JMT Network Services on February 5, 2024 and sell it today you would lose (21.00) from holding JMT Network Services or give up 0.99% of portfolio value over 90 days.

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

JMT Network Services  vs.  Chularat Hospital Public

JMT Network Services

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JMT Network Services are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, JMT Network is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Chularat Hospital Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chularat Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators 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 JMT Network and Chularat Hospital

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

The idea behind JMT Network Services and Chularat Hospital 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.