Correlation Between JCK International and Absolute Clean
Can any of the company-specific risk be diversified away by investing in both JCK International and Absolute Clean 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 JCK International and Absolute Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JCK International Public and Absolute Clean Energy, you can compare the effects of market volatilities on JCK International and Absolute Clean 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 JCK International with a short position of Absolute Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK International and Absolute Clean.
Diversification Opportunities for JCK International and Absolute Clean
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCK and Absolute is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding JCK International Public and Absolute Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Clean Energy and JCK 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 JCK International Public are associated (or correlated) with Absolute Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Clean Energy has no effect on the direction of JCK International i.e., JCK International and Absolute Clean go up and down completely randomly.
Pair Corralation between JCK International and Absolute Clean
Assuming the 90 days trading horizon JCK International Public is expected to generate 1.0 times more return on investment than Absolute Clean. However, JCK International is 1.0 times more volatile than Absolute Clean Energy. It trades about 0.04 of its potential returns per unit of risk. Absolute Clean Energy is currently generating about 0.04 per unit of risk. If you would invest 30.00 in JCK International Public on September 1, 2024 and sell it today you would lose (6.00) from holding JCK International Public or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCK International Public vs. Absolute Clean Energy
Performance |
| Timeline |
| JCK International Public |
| Absolute Clean Energy |
JCK International and Absolute Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK International and Absolute Clean
The main advantage of trading using opposite JCK International and Absolute Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK International position performs unexpectedly, Absolute Clean 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 Absolute Clean will offset losses from the drop in Absolute Clean's long position.| JCK International vs. JAS Asset PCL | JCK International vs. Country Group Development | JCK International vs. Everland Public | JCK International vs. Bangkok Land Public |
| Absolute Clean vs. Asia Biomass Public | Absolute Clean vs. JCK Hospitality Public | Absolute Clean vs. JCK International Public | Absolute Clean vs. Green Resources 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |