Correlation Between Dimet Public and JCK International
Can any of the company-specific risk be diversified away by investing in both Dimet Public 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 Dimet Public and JCK International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimet Public and JCK International Public, you can compare the effects of market volatilities on Dimet Public 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 Dimet Public with a short position of JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimet Public and JCK International.
Diversification Opportunities for Dimet Public and JCK International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dimet and JCK is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dimet 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 Dimet Public 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 Dimet 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 Dimet Public i.e., Dimet Public and JCK International go up and down completely randomly.
Pair Corralation between Dimet Public and JCK International
Assuming the 90 days trading horizon Dimet Public is expected to generate 1.0 times more return on investment than JCK International. However, Dimet Public is 1.0 times less risky than JCK International. It trades about 0.11 of its potential returns per unit of risk. JCK International Public is currently generating about 0.11 per unit of risk. If you would invest 24.00 in Dimet Public on September 2, 2024 and sell it today you would lose (1.00) from holding Dimet Public or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimet Public vs. JCK International Public
Performance |
| Timeline |
| Dimet Public |
| JCK International Public |
Dimet Public and JCK International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimet Public and JCK International
The main advantage of trading using opposite Dimet Public and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimet Public 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.| Dimet Public vs. PTT Public | Dimet Public vs. The Siam Commercial | Dimet Public vs. Airports of Thailand | Dimet Public vs. CP ALL 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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