Correlation Between JCK Hospitality and Meta Public
Can any of the company-specific risk be diversified away by investing in both JCK Hospitality and Meta 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 Hospitality and Meta Public 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 Meta Public, you can compare the effects of market volatilities on JCK Hospitality and Meta 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 Hospitality with a short position of Meta Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK Hospitality and Meta Public.
Diversification Opportunities for JCK Hospitality and Meta Public
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JCK and Meta is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding JCK Hospitality Public and Meta Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta 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 Meta Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Public has no effect on the direction of JCK Hospitality i.e., JCK Hospitality and Meta Public go up and down completely randomly.
Pair Corralation between JCK Hospitality and Meta Public
Assuming the 90 days trading horizon JCK Hospitality Public is expected to generate 5.84 times more return on investment than Meta Public. However, JCK Hospitality is 5.84 times more volatile than Meta Public. It trades about 0.05 of its potential returns per unit of risk. Meta Public is currently generating about -0.16 per unit of risk. If you would invest 3.00 in JCK Hospitality Public on August 31, 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. Meta Public
Performance |
| Timeline |
| JCK Hospitality Public |
| Meta Public |
JCK Hospitality and Meta Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK Hospitality and Meta Public
The main advantage of trading using opposite JCK Hospitality and Meta Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK Hospitality position performs unexpectedly, Meta 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 Meta Public will offset losses from the drop in Meta Public's long position.| JCK Hospitality vs. Lohakit Metal Public | JCK Hospitality vs. BPS TECHNOLOGY PUBLIC | JCK Hospitality vs. Thai Life Insurance | JCK Hospitality vs. ALL ENERGY UTILITIES |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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