Correlation Between ICC International and Jack Chia
Can any of the company-specific risk be diversified away by investing in both ICC International and Jack Chia 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 ICC International and Jack Chia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC International Public and Jack Chia Industries, you can compare the effects of market volatilities on ICC International and Jack Chia 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 ICC International with a short position of Jack Chia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC International and Jack Chia.
Diversification Opportunities for ICC International and Jack Chia
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICC and Jack is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding ICC International Public and Jack Chia Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Chia Industries and ICC International 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 ICC International Public are associated (or correlated) with Jack Chia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Chia Industries has no effect on the direction of ICC International i.e., ICC International and Jack Chia go up and down completely randomly.
Pair Corralation between ICC International and Jack Chia
Assuming the 90 days trading horizon ICC International is expected to generate 1.02 times less return on investment than Jack Chia. In addition to that, ICC International is 1.0 times more volatile than Jack Chia Industries. It trades about 0.08 of its total potential returns per unit of risk. Jack Chia Industries is currently generating about 0.08 per unit of volatility. If you would invest 8,050 in Jack Chia Industries on September 2, 2024 and sell it today you would earn a total of 75.00 from holding Jack Chia Industries or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICC International Public vs. Jack Chia Industries
Performance |
| Timeline |
| ICC International Public |
| Jack Chia Industries |
ICC International and Jack Chia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC International and Jack Chia
The main advantage of trading using opposite ICC International and Jack Chia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC International position performs unexpectedly, Jack Chia 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 Jack Chia will offset losses from the drop in Jack Chia's long position.| ICC International vs. Hana Microelectronics Public | ICC International vs. Hwa Fong Rubber | ICC International vs. Goodyear Public | ICC International vs. BEC World Public |
| Jack Chia vs. MK Restaurant Group | Jack Chia vs. TRC Construction Public | Jack Chia vs. Bangkok Expressway and | Jack Chia vs. Lohakit Metal 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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