Correlation Between JCK Hospitality and Praram 9
Can any of the company-specific risk be diversified away by investing in both JCK Hospitality and Praram 9 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 Praram 9 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 Praram 9 Hospital, you can compare the effects of market volatilities on JCK Hospitality and Praram 9 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 Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCK Hospitality and Praram 9.
Diversification Opportunities for JCK Hospitality and Praram 9
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCK and Praram is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding JCK Hospitality Public and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital 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 Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of JCK Hospitality i.e., JCK Hospitality and Praram 9 go up and down completely randomly.
Pair Corralation between JCK Hospitality and Praram 9
Assuming the 90 days trading horizon JCK Hospitality Public is expected to generate 25.09 times more return on investment than Praram 9. However, JCK Hospitality is 25.09 times more volatile than Praram 9 Hospital. It trades about 0.06 of its potential returns per unit of risk. Praram 9 Hospital is currently generating about 0.06 per unit of risk. If you would invest 12.00 in JCK Hospitality Public on September 13, 2024 and sell it today you would lose (10.00) from holding JCK Hospitality Public or give up 83.33% 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. Praram 9 Hospital
Performance |
| Timeline |
| JCK Hospitality Public |
| Praram 9 Hospital |
JCK Hospitality and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCK Hospitality and Praram 9
The main advantage of trading using opposite JCK Hospitality and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK Hospitality position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's 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 |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital Public | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |