Correlation Between Green Resources and JCK International
Can any of the company-specific risk be diversified away by investing in both Green Resources 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 Green Resources and JCK International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Resources Public and JCK International Public, you can compare the effects of market volatilities on Green Resources 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 Green Resources with a short position of JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Resources and JCK International.
Diversification Opportunities for Green Resources and JCK International
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Green and JCK is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Green Resources 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 Green Resources 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 Green Resources 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 Green Resources i.e., Green Resources and JCK International go up and down completely randomly.
Pair Corralation between Green Resources and JCK International
Assuming the 90 days trading horizon Green Resources Public is expected to under-perform the JCK International. But the stock apears to be less risky and, when comparing its historical volatility, Green Resources Public is 6.79 times less risky than JCK International. The stock trades about -0.17 of its potential returns per unit of risk. The JCK International Public is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20.00 in JCK International Public on October 24, 2024 and sell it today you would earn a total of 2.00 from holding JCK International Public or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Green Resources Public vs. JCK International Public
Performance |
| Timeline |
| Green Resources Public |
| JCK International Public |
Green Resources and JCK International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Resources and JCK International
The main advantage of trading using opposite Green Resources and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Resources 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.| Green Resources vs. Ekarat Engineering Public | Green Resources vs. Global Power Synergy | Green Resources vs. BCPG Public | Green Resources vs. IRPC Public |
| JCK International vs. The Platinum Group | JCK International vs. Property Perfect Public | JCK International vs. Siamese Asset Public | JCK International vs. The Erawan Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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