Correlation Between Property Perfect and JCK International
Can any of the company-specific risk be diversified away by investing in both Property Perfect and JCK 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 Property Perfect and JCK International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Property Perfect Public and JCK International Public, you can compare the effects of market volatilities on Property Perfect and JCK 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 Property Perfect with a short position of JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Property Perfect and JCK International.
Diversification Opportunities for Property Perfect and JCK International
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Property and JCK is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Property Perfect Public and JCK International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCK International Public and Property Perfect 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 Property Perfect Public are associated (or correlated) with JCK International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCK International Public has no effect on the direction of Property Perfect i.e., Property Perfect and JCK International go up and down completely randomly.
Pair Corralation between Property Perfect and JCK International
Assuming the 90 days horizon Property Perfect Public is expected to generate 0.73 times more return on investment than JCK International. However, Property Perfect Public is 1.37 times less risky than JCK International. It trades about 0.15 of its potential returns per unit of risk. JCK International Public is currently generating about 0.09 per unit of risk. If you would invest 12.00 in Property Perfect Public on October 24, 2024 and sell it today you would earn a total of 2.00 from holding Property Perfect Public or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Property Perfect Public vs. JCK International Public
Performance |
| Timeline |
| Property Perfect Public |
| JCK International Public |
Property Perfect and JCK International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Property Perfect and JCK International
The main advantage of trading using opposite Property Perfect and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Property Perfect position performs unexpectedly, JCK 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 JCK International will offset losses from the drop in JCK International's long position.| Property Perfect vs. Land and Houses | Property Perfect vs. Quality Houses Public | Property Perfect vs. LPN Development Public | Property Perfect vs. Siri Prime Office |
| JCK International vs. The Platinum Group | JCK International vs. Property Perfect Public | JCK International vs. Siamese Asset Public | JCK International vs. The Erawan Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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