Correlation Between Jay Mart and Interlink Telecom

Can any of the company-specific risk be diversified away by investing in both Jay Mart and Interlink Telecom 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 Jay Mart and Interlink Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jay Mart Public and Interlink Telecom Public, you can compare the effects of market volatilities on Jay Mart and Interlink Telecom 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 Jay Mart with a short position of Interlink Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Interlink Telecom.

Diversification Opportunities for Jay Mart and Interlink Telecom

0.87

Correlation Coefficient

Jay Mart  Interlink Telecom

Very poor diversification

The 3 months correlation between Jay and Interlink is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart Public and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom Public and Jay Mart 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 Jay Mart Public are associated (or correlated) with Interlink Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of Jay Mart i.e., Jay Mart and Interlink Telecom go up and down completely randomly.

Pair Corralation between Jay Mart and Interlink Telecom

Assuming the 90 days trading horizon Jay Mart Public is expected to generate 1.61 times more return on investment than Interlink Telecom. However, Jay Mart is 1.61 times more volatile than Interlink Telecom Public. It trades about 0.11 of its potential returns per unit of risk. Interlink Telecom Public is currently generating about 0.16 per unit of risk. If you would invest  630.00  in Jay Mart Public on June 1, 2025 and sell it today you would earn a total of  195.00  from holding Jay Mart Public or generate 30.95% return on investment over 90 days.

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

Jay Mart Public  vs.  Interlink Telecom Public

Jay Mart Public

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Jay Mart Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Jay Mart sustained solid returns over the last few months and may actually be approaching a breakup point.

Interlink Telecom Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Interlink Telecom Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Interlink Telecom disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jay Mart and Interlink Telecom

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

The idea behind Jay Mart Public and Interlink Telecom 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.