Correlation Between JCK Hospitality and CP ALL
Can any of the company-specific risk be diversified away by investing in both JCK Hospitality and CP ALL 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 Hospitality and CP ALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JCK Hospitality Public and CP ALL Public, you can compare the effects of market volatilities on JCK Hospitality and CP ALL 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 Hospitality with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK Hospitality and CP ALL.
Diversification Opportunities for JCK Hospitality and CP ALL
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JCK and CPALL is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding JCK Hospitality Public and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and JCK Hospitality 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 Hospitality Public are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of JCK Hospitality i.e., JCK Hospitality and CP ALL go up and down completely randomly.
Pair Corralation between JCK Hospitality and CP ALL
Assuming the 90 days trading horizon JCK Hospitality Public is expected to generate 27.11 times more return on investment than CP ALL. However, JCK Hospitality is 27.11 times more volatile than CP ALL Public. It trades about 0.05 of its potential returns per unit of risk. CP ALL Public is currently generating about -0.15 per unit of risk. If you would invest 3.00 in JCK Hospitality Public on September 2, 2024 and sell it today you would lose (1.00) from holding JCK Hospitality Public or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCK Hospitality Public vs. CP ALL Public
Performance |
| Timeline |
| JCK Hospitality Public |
| CP ALL Public |
JCK Hospitality and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK Hospitality and CP ALL
The main advantage of trading using opposite JCK Hospitality and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK Hospitality position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| JCK Hospitality vs. CP ALL Public | JCK Hospitality vs. BTS Group Holdings | JCK Hospitality vs. Minor International Public | JCK Hospitality vs. Airports of Thailand |
| CP ALL vs. Airports of Thailand | CP ALL vs. PTT Public | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. Kasikornbank 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |