Correlation Between JCK Hospitality and Green Resources
Can any of the company-specific risk be diversified away by investing in both JCK Hospitality and Green Resources 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 Green Resources 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 Green Resources Public, you can compare the effects of market volatilities on JCK Hospitality and Green Resources 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 Green Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK Hospitality and Green Resources.
Diversification Opportunities for JCK Hospitality and Green Resources
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCK and Green is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding JCK Hospitality Public and Green Resources Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Resources 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 Green Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Resources Public has no effect on the direction of JCK Hospitality i.e., JCK Hospitality and Green Resources go up and down completely randomly.
Pair Corralation between JCK Hospitality and Green Resources
Assuming the 90 days trading horizon JCK Hospitality Public is expected to generate 1.01 times more return on investment than Green Resources. However, JCK Hospitality is 1.01 times more volatile than Green Resources Public. It trades about 0.13 of its potential returns per unit of risk. Green Resources Public is currently generating about 0.11 per unit of risk. If you would invest 2.00 in JCK Hospitality Public on September 2, 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. Green Resources Public
Performance |
| Timeline |
| JCK Hospitality Public |
| Green Resources Public |
JCK Hospitality and Green Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK Hospitality and Green Resources
The main advantage of trading using opposite JCK Hospitality and Green Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK Hospitality position performs unexpectedly, Green Resources 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 Green Resources will offset losses from the drop in Green Resources' 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 |
| Green Resources vs. Ekarat Engineering Public | Green Resources vs. Global Power Synergy | Green Resources vs. BCPG Public | Green Resources vs. IRPC 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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