Correlation Between ALL ENERGY and JCK Hospitality
Can any of the company-specific risk be diversified away by investing in both ALL ENERGY and JCK Hospitality 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 ALL ENERGY and JCK Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALL ENERGY UTILITIES and JCK Hospitality Public, you can compare the effects of market volatilities on ALL ENERGY and JCK Hospitality 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 ALL ENERGY with a short position of JCK Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALL ENERGY and JCK Hospitality.
Diversification Opportunities for ALL ENERGY and JCK Hospitality
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ALL and JCK is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ALL ENERGY UTILITIES and JCK Hospitality Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCK Hospitality Public and ALL ENERGY 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 ALL ENERGY UTILITIES are associated (or correlated) with JCK Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCK Hospitality Public has no effect on the direction of ALL ENERGY i.e., ALL ENERGY and JCK Hospitality go up and down completely randomly.
Pair Corralation between ALL ENERGY and JCK Hospitality
Assuming the 90 days horizon ALL ENERGY UTILITIES is expected to under-perform the JCK Hospitality. But the stock apears to be less risky and, when comparing its historical volatility, ALL ENERGY UTILITIES is 12.66 times less risky than JCK Hospitality. The stock trades about -0.04 of its potential returns per unit of risk. The JCK Hospitality Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13.00 in JCK Hospitality Public on September 2, 2024 and sell it today you would lose (11.00) from holding JCK Hospitality Public or give up 84.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
ALL ENERGY UTILITIES vs. JCK Hospitality Public
Performance |
| Timeline |
| ALL ENERGY UTILITIES |
| JCK Hospitality Public |
ALL ENERGY and JCK Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALL ENERGY and JCK Hospitality
The main advantage of trading using opposite ALL ENERGY and JCK Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALL ENERGY position performs unexpectedly, JCK Hospitality 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 Hospitality will offset losses from the drop in JCK Hospitality's long position.| ALL ENERGY vs. AP Public | ALL ENERGY vs. TRC Construction Public | ALL ENERGY vs. Bangkok Expressway and | ALL ENERGY vs. Lohakit Metal Public |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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