Correlation Between JCK International and Dimet Public
Can any of the company-specific risk be diversified away by investing in both JCK International and Dimet Public 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 Dimet Public 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 Dimet Public, you can compare the effects of market volatilities on JCK International and Dimet Public 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 Dimet Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK International and Dimet Public.
Diversification Opportunities for JCK International and Dimet Public
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JCK and Dimet is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding JCK International Public and Dimet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimet Public 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 Dimet Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimet Public has no effect on the direction of JCK International i.e., JCK International and Dimet Public go up and down completely randomly.
Pair Corralation between JCK International and Dimet Public
Assuming the 90 days trading horizon JCK International Public is expected to generate 2.08 times more return on investment than Dimet Public. However, JCK International is 2.08 times more volatile than Dimet Public. It trades about 0.09 of its potential returns per unit of risk. Dimet Public is currently generating about 0.16 per unit of risk. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCK International Public vs. Dimet Public
Performance |
| Timeline |
| JCK International Public |
| Dimet Public |
JCK International and Dimet Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK International and Dimet Public
The main advantage of trading using opposite JCK International and Dimet Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK International position performs unexpectedly, Dimet Public 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 Dimet Public will offset losses from the drop in Dimet Public's long position.| JCK International vs. The Platinum Group | JCK International vs. Property Perfect Public | JCK International vs. Siamese Asset Public | JCK International vs. The Erawan Group |
| Dimet Public vs. ARIP Public | Dimet Public vs. G Capital Public | Dimet Public vs. Hydrotek Public | Dimet Public vs. East Coast Furnitech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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