Correlation Between Lohakit Metal and JCK Hospitality
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and JCK Hospitality 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 Lohakit Metal and JCK Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohakit Metal Public and JCK Hospitality Public, you can compare the effects of market volatilities on Lohakit Metal and JCK Hospitality 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 Lohakit Metal with a short position of JCK Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and JCK Hospitality.
Diversification Opportunities for Lohakit Metal and JCK Hospitality
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lohakit and JCK is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and JCK Hospitality Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCK Hospitality Public and Lohakit Metal 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 Lohakit Metal Public are associated (or correlated) with JCK Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCK Hospitality Public has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and JCK Hospitality go up and down completely randomly.
Pair Corralation between Lohakit Metal and JCK Hospitality
Assuming the 90 days trading horizon Lohakit Metal is expected to generate 57.83 times less return on investment than JCK Hospitality. But when comparing it to its historical volatility, Lohakit Metal Public is 44.34 times less risky than JCK Hospitality. It trades about 0.04 of its potential returns per unit of risk. JCK Hospitality Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3.00 in JCK Hospitality Public on September 2, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. JCK Hospitality Public
Performance |
| Timeline |
| Lohakit Metal Public |
| JCK Hospitality Public |
Lohakit Metal and JCK Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and JCK Hospitality
The main advantage of trading using opposite Lohakit Metal and JCK Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, JCK Hospitality 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 JCK Hospitality will offset losses from the drop in JCK Hospitality's long position.| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. Bangkok Expressway and |
| JCK Hospitality vs. CP ALL Public | JCK Hospitality vs. BTS Group Holdings | JCK Hospitality vs. Minor International Public | JCK Hospitality vs. Airports of Thailand |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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