Correlation Between Just Kitchen and TH International
Can any of the company-specific risk be diversified away by investing in both Just Kitchen and TH 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 Just Kitchen and TH International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Just Kitchen Holdings and TH International Limited, you can compare the effects of market volatilities on Just Kitchen and TH 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 Just Kitchen with a short position of TH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Kitchen and TH International.
Diversification Opportunities for Just Kitchen and TH International
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Just and THCH is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Just Kitchen Holdings and TH International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TH International and Just Kitchen 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 Just Kitchen Holdings are associated (or correlated) with TH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TH International has no effect on the direction of Just Kitchen i.e., Just Kitchen and TH International go up and down completely randomly.
Pair Corralation between Just Kitchen and TH International
If you would invest 69.00 in TH International Limited on September 2, 2024 and sell it today you would earn a total of 21.00 from holding TH International Limited or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Just Kitchen Holdings vs. TH International Limited
Performance |
| Timeline |
| Just Kitchen Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TH International |
Just Kitchen and TH International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Just Kitchen and TH International
The main advantage of trading using opposite Just Kitchen and TH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Kitchen position performs unexpectedly, TH 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 TH International will offset losses from the drop in TH International's long position.| Just Kitchen vs. Alsea SAB de | Just Kitchen vs. Marstons PLC | Just Kitchen vs. Bagger Daves Burger | Just Kitchen vs. Marstons PLC |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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