Correlation Between Dow Jones and JCK International
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and JCK International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and JCK International Public, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and JCK International.
Diversification Opportunities for Dow Jones and JCK International
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and JCK is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and JCK International go up and down completely randomly.
Pair Corralation between Dow Jones and JCK International
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.34 times more return on investment than JCK International. However, Dow Jones Industrial is 2.95 times less risky than JCK International. It trades about 0.37 of its potential returns per unit of risk. JCK International Public is currently generating about -0.29 per unit of risk. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. JCK International Public
Performance |
| Timeline |
Dow Jones and JCK International Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
JCK International Public
Pair trading matchups for JCK International
Pair Trading with Dow Jones and JCK International
The main advantage of trading using opposite Dow Jones and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |