Correlation Between Country Group and JCK International
Can any of the company-specific risk be diversified away by investing in both Country Group 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 Country Group and JCK International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Country Group Development and JCK International Public, you can compare the effects of market volatilities on Country Group 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 Country Group with a short position of JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Group and JCK International.
Diversification Opportunities for Country Group and JCK International
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Country and JCK is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Country Group Development 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 Country Group 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 Country Group Development 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 Country Group i.e., Country Group and JCK International go up and down completely randomly.
Pair Corralation between Country Group and JCK International
Assuming the 90 days trading horizon Country Group Development is expected to generate 0.87 times more return on investment than JCK International. However, Country Group Development is 1.15 times less risky than JCK International. It trades about 0.07 of its potential returns per unit of risk. JCK International Public is currently generating about -0.25 per unit of risk. If you would invest 33.00 in Country Group Development on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Country Group Development or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Country Group Development vs. JCK International Public
Performance |
| Timeline |
| Country Group Development |
| JCK International Public |
Country Group and JCK International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Group and JCK International
The main advantage of trading using opposite Country Group and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Group 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.| Country Group vs. Eastern Star Real | Country Group vs. Bangkok Land Public | Country Group vs. Ananda Development Public | Country Group vs. Better World Green |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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