Correlation Between Jack Chia and Thonburi Medical
Can any of the company-specific risk be diversified away by investing in both Jack Chia and Thonburi Medical 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 Jack Chia and Thonburi Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Chia Industries and Thonburi Medical Centre, you can compare the effects of market volatilities on Jack Chia and Thonburi Medical 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 Jack Chia with a short position of Thonburi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Chia and Thonburi Medical.
Diversification Opportunities for Jack Chia and Thonburi Medical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jack and Thonburi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jack Chia Industries and Thonburi Medical Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thonburi Medical Centre and Jack Chia 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 Jack Chia Industries are associated (or correlated) with Thonburi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thonburi Medical Centre has no effect on the direction of Jack Chia i.e., Jack Chia and Thonburi Medical go up and down completely randomly.
Pair Corralation between Jack Chia and Thonburi Medical
Assuming the 90 days trading horizon Jack Chia Industries is expected to generate 1.0 times more return on investment than Thonburi Medical. However, Jack Chia Industries is 1.0 times less risky than Thonburi Medical. It trades about 0.05 of its potential returns per unit of risk. Thonburi Medical Centre is currently generating about 0.05 per unit of risk. If you would invest 7,444 in Jack Chia Industries on August 31, 2024 and sell it today you would earn a total of 681.00 from holding Jack Chia Industries or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack Chia Industries vs. Thonburi Medical Centre
Performance |
| Timeline |
| Jack Chia Industries |
| Thonburi Medical Centre |
Jack Chia and Thonburi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Chia and Thonburi Medical
The main advantage of trading using opposite Jack Chia and Thonburi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Chia position performs unexpectedly, Thonburi Medical 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 Thonburi Medical will offset losses from the drop in Thonburi Medical's long position.| Jack Chia vs. Kang Yong Electric | Jack Chia vs. Krungdhep Sophon Public | Jack Chia vs. KGI Securities Public | Jack Chia vs. Inoue Rubber Public |
| Thonburi Medical vs. Aikchol Hospital Public | Thonburi Medical vs. Nonthavej Hospital Public | Thonburi Medical vs. Wattana Karnpaet Public | Thonburi Medical vs. Mahachai 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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