Correlation Between Jasmine Telecom and Samart Telcoms

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

Diversification Opportunities for Jasmine Telecom and Samart Telcoms

0.8

Correlation Coefficient

Jasmine Telecom  Samart Telcoms

Very poor diversification

The 3 months correlation between Jasmine and Samart is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine Telecom Systems and Samart Telcoms Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart Telcoms 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 Samart Telcoms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Telcoms Public has no effect on the direction of Jasmine Telecom i.e., Jasmine Telecom and Samart Telcoms go up and down completely randomly.

Pair Corralation between Jasmine Telecom and Samart Telcoms

Assuming the 90 days trading horizon Jasmine Telecom Systems is expected to under-perform the Samart Telcoms. In addition to that, Jasmine Telecom is 1.77 times more volatile than Samart Telcoms Public. It trades about -0.07 of its total potential returns per unit of risk. Samart Telcoms Public is currently generating about -0.09 per unit of volatility. If you would invest  645.00  in Samart Telcoms Public on April 24, 2025 and sell it today you would lose (80.00) from holding Samart Telcoms Public or give up 12.4% of portfolio value over 90 days.

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

Jasmine Telecom Systems  vs.  Samart Telcoms Public

Jasmine Telecom Systems

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Samart Telcoms Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samart Telcoms Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jasmine Telecom and Samart Telcoms

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

The idea behind Jasmine Telecom Systems and Samart Telcoms 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.