Correlation Between JCK Hospitality and Earth Tech
Can any of the company-specific risk be diversified away by investing in both JCK Hospitality and Earth Tech 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 Earth Tech 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 Earth Tech Environment, you can compare the effects of market volatilities on JCK Hospitality and Earth Tech 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 Earth Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK Hospitality and Earth Tech.
Diversification Opportunities for JCK Hospitality and Earth Tech
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCK and Earth is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding JCK Hospitality Public and Earth Tech Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Earth Tech Environment 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 Earth Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Earth Tech Environment has no effect on the direction of JCK Hospitality i.e., JCK Hospitality and Earth Tech go up and down completely randomly.
Pair Corralation between JCK Hospitality and Earth Tech
Assuming the 90 days trading horizon JCK Hospitality Public is expected to generate 9.12 times more return on investment than Earth Tech. However, JCK Hospitality is 9.12 times more volatile than Earth Tech Environment. It trades about 0.11 of its potential returns per unit of risk. Earth Tech Environment is currently generating about 0.01 per unit of risk. If you would invest 2.00 in JCK Hospitality Public on September 3, 2024 and sell it today you would earn a total of 0.00 from holding JCK Hospitality Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCK Hospitality Public vs. Earth Tech Environment
Performance |
| Timeline |
| JCK Hospitality Public |
| Earth Tech Environment |
JCK Hospitality and Earth Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK Hospitality and Earth Tech
The main advantage of trading using opposite JCK Hospitality and Earth Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK Hospitality position performs unexpectedly, Earth Tech 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 Earth Tech will offset losses from the drop in Earth Tech's long position.| JCK Hospitality vs. Bhiraj Office Leasehold | JCK Hospitality vs. Bualuang Office Leasehold | JCK Hospitality vs. Silicon Craft Technology | JCK Hospitality vs. Ramkhamhaeng Hospital Public |
| Earth Tech vs. Gulf Energy Development | Earth Tech vs. Energy Absolute Public | Earth Tech vs. Gunkul Engineering Public | Earth Tech vs. Global Power Synergy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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