Correlation Between CK Power and Jasmine International
Can any of the company-specific risk be diversified away by investing in both CK Power and Jasmine 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 CK Power and Jasmine International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Power Public and Jasmine International Public, you can compare the effects of market volatilities on CK Power and Jasmine 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 CK Power with a short position of Jasmine International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Power and Jasmine International.
Diversification Opportunities for CK Power and Jasmine International
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CKP and Jasmine is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CK Power Public and Jasmine International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine International and CK Power 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 CK Power Public are associated (or correlated) with Jasmine International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine International has no effect on the direction of CK Power i.e., CK Power and Jasmine International go up and down completely randomly.
Pair Corralation between CK Power and Jasmine International
Assuming the 90 days trading horizon CK Power Public is expected to generate 0.57 times more return on investment than Jasmine International. However, CK Power Public is 1.77 times less risky than Jasmine International. It trades about -0.07 of its potential returns per unit of risk. Jasmine International Public is currently generating about -0.09 per unit of risk. If you would invest 392.00 in CK Power Public on September 3, 2024 and sell it today you would lose (64.00) from holding CK Power Public or give up 16.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Power Public vs. Jasmine International Public
Performance |
| Timeline |
| CK Power Public |
| Jasmine International |
CK Power and Jasmine International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Power and Jasmine International
The main advantage of trading using opposite CK Power and Jasmine International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Power position performs unexpectedly, Jasmine 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 Jasmine International will offset losses from the drop in Jasmine International's long position.| CK Power vs. Energy Absolute Public | CK Power vs. BCPG Public | CK Power vs. Bangkok Expressway and | CK Power vs. Gulf Energy Development |
| Jasmine International vs. True Public | Jasmine International vs. Land and Houses | Jasmine International vs. Advanced Info Service | Jasmine International vs. Krung Thai Bank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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