Correlation Between Asia Biomass and JCK International
Can any of the company-specific risk be diversified away by investing in both Asia Biomass and JCK International 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 Asia Biomass and JCK International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Biomass Public and JCK International Public, you can compare the effects of market volatilities on Asia Biomass and JCK International 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 Asia Biomass with a short position of JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Biomass and JCK International.
Diversification Opportunities for Asia Biomass and JCK International
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asia and JCK is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Asia Biomass Public and JCK International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCK International Public and Asia Biomass 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 Asia Biomass Public are associated (or correlated) with JCK International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCK International Public has no effect on the direction of Asia Biomass i.e., Asia Biomass and JCK International go up and down completely randomly.
Pair Corralation between Asia Biomass and JCK International
Assuming the 90 days trading horizon Asia Biomass is expected to generate 1.06 times less return on investment than JCK International. But when comparing it to its historical volatility, Asia Biomass Public is 1.0 times less risky than JCK International. It trades about 0.04 of its potential returns per unit of risk. JCK International Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 30.00 in JCK International Public on September 2, 2024 and sell it today you would lose (6.00) from holding JCK International Public or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Biomass Public vs. JCK International Public
Performance |
| Timeline |
| Asia Biomass Public |
| JCK International Public |
Asia Biomass and JCK International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Biomass and JCK International
The main advantage of trading using opposite Asia Biomass and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Biomass position performs unexpectedly, JCK International 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 JCK International will offset losses from the drop in JCK International's long position.| Asia Biomass vs. Super Energy | Asia Biomass vs. The Erawan Group | Asia Biomass vs. Autocorp Holding Public | Asia Biomass vs. Ditto Public |
| JCK International vs. JAS Asset PCL | JCK International vs. Country Group Development | JCK International vs. Everland Public | JCK International vs. Bangkok Land Public |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |