Correlation Between Jasmine International and CK Power
Can any of the company-specific risk be diversified away by investing in both Jasmine International and CK Power 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 Jasmine International and CK Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasmine International Public and CK Power Public, you can compare the effects of market volatilities on Jasmine International and CK Power 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 Jasmine International with a short position of CK Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and CK Power.
Diversification Opportunities for Jasmine International and CK Power
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jasmine and CKP is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public and CK Power Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Power Public and Jasmine 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 Jasmine International Public are associated (or correlated) with CK Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Power Public has no effect on the direction of Jasmine International i.e., Jasmine International and CK Power go up and down completely randomly.
Pair Corralation between Jasmine International and CK Power
Assuming the 90 days trading horizon Jasmine International Public is expected to generate 2.06 times more return on investment than CK Power. However, Jasmine International is 2.06 times more volatile than CK Power Public. It trades about 0.04 of its potential returns per unit of risk. CK Power Public is currently generating about -0.03 per unit of risk. If you would invest 169.00 in Jasmine International Public on September 3, 2024 and sell it today you would earn a total of 59.00 from holding Jasmine International Public or generate 34.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasmine International Public vs. CK Power Public
Performance |
| Timeline |
| Jasmine International |
| CK Power Public |
Jasmine International and CK Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasmine International and CK Power
The main advantage of trading using opposite Jasmine International and CK Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International position performs unexpectedly, CK Power 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 CK Power will offset losses from the drop in CK Power's long position.| Jasmine International vs. True Public | Jasmine International vs. Land and Houses | Jasmine International vs. Advanced Info Service | Jasmine International vs. Krung Thai Bank |
| CK Power vs. Energy Absolute Public | CK Power vs. BCPG Public | CK Power vs. Bangkok Expressway and | CK Power vs. Gulf Energy Development |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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