Correlation Between JCK Hospitality and Minor International
Can any of the company-specific risk be diversified away by investing in both JCK Hospitality and Minor 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 Minor 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 Minor International Public, you can compare the effects of market volatilities on JCK Hospitality and Minor 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK Hospitality and Minor International.
Diversification Opportunities for JCK Hospitality and Minor International
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCK and Minor is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding JCK Hospitality Public and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of JCK Hospitality i.e., JCK Hospitality and Minor International go up and down completely randomly.
Pair Corralation between JCK Hospitality and Minor International
Assuming the 90 days trading horizon JCK Hospitality Public is expected to generate 15.12 times more return on investment than Minor International. However, JCK Hospitality is 15.12 times more volatile than Minor International Public. It trades about 0.11 of its potential returns per unit of risk. Minor International Public is currently generating about -0.04 per unit of risk. If you would invest 45.00 in JCK Hospitality Public on November 3, 2024 and sell it today you would lose (6.00) from holding JCK Hospitality Public or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCK Hospitality Public vs. Minor International Public
Performance |
| Timeline |
| JCK Hospitality Public |
| Minor International |
JCK Hospitality and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK Hospitality and Minor International
The main advantage of trading using opposite JCK Hospitality and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK Hospitality position performs unexpectedly, Minor 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 Minor International will offset losses from the drop in Minor International's long position.| JCK Hospitality vs. Teka Construction PCL | JCK Hospitality vs. Laguna Resorts Hotels | JCK Hospitality vs. Thai Rubber Latex | JCK Hospitality vs. Siri Prime Office |
| Minor International vs. CP ALL Public | Minor International vs. Bangkok Dusit Medical | Minor International vs. Airports of Thailand | Minor International 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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