Correlation Between JCK Hospitality and JCK International
Can any of the company-specific risk be diversified away by investing in both JCK Hospitality and JCK International 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 JCK International 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 JCK International Public, you can compare the effects of market volatilities on JCK Hospitality and JCK International 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 JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK Hospitality and JCK International.
Diversification Opportunities for JCK Hospitality and JCK International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCK and JCK is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JCK Hospitality Public and JCK International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCK International 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 JCK International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCK International Public has no effect on the direction of JCK Hospitality i.e., JCK Hospitality and JCK International go up and down completely randomly.
Pair Corralation between JCK Hospitality and JCK International
Assuming the 90 days trading horizon JCK Hospitality Public is expected to generate 2.61 times more return on investment than JCK International. However, JCK Hospitality is 2.61 times more volatile than JCK International Public. It trades about 0.21 of its potential returns per unit of risk. JCK International Public is currently generating about 0.09 per unit of risk. If you would invest 30.00 in JCK Hospitality Public on October 24, 2024 and sell it today you would earn a total of 18.00 from holding JCK Hospitality Public or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
JCK Hospitality Public vs. JCK International Public
Performance |
| Timeline |
| JCK Hospitality Public |
| JCK International Public |
JCK Hospitality and JCK International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK Hospitality and JCK International
The main advantage of trading using opposite JCK Hospitality and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK Hospitality position performs unexpectedly, JCK International 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 JCK International will offset losses from the drop in JCK International's long position.| JCK Hospitality vs. Minor International Public | JCK Hospitality vs. MK Restaurant Group | JCK Hospitality vs. After You Public | JCK Hospitality vs. SP Syndicate Public |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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