Correlation Between Sriracha Construction and JCK Hospitality
Can any of the company-specific risk be diversified away by investing in both Sriracha Construction 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 Sriracha Construction and JCK Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sriracha Construction Public and JCK Hospitality Public, you can compare the effects of market volatilities on Sriracha Construction 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 Sriracha Construction with a short position of JCK Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sriracha Construction and JCK Hospitality.
Diversification Opportunities for Sriracha Construction and JCK Hospitality
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sriracha and JCK is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sriracha Construction 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 Sriracha Construction 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 Sriracha Construction 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 Sriracha Construction i.e., Sriracha Construction and JCK Hospitality go up and down completely randomly.
Pair Corralation between Sriracha Construction and JCK Hospitality
Assuming the 90 days trading horizon Sriracha Construction Public is expected to under-perform the JCK Hospitality. But the stock apears to be less risky and, when comparing its historical volatility, Sriracha Construction Public is 13.27 times less risky than JCK Hospitality. The stock trades about -0.45 of its potential returns per unit of risk. The JCK Hospitality Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2.00 in JCK Hospitality Public on September 4, 2024 and sell it today you would earn a total of 0.00 from holding JCK Hospitality Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sriracha Construction Public vs. JCK Hospitality Public
Performance |
| Timeline |
| Sriracha Construction |
| JCK Hospitality Public |
Sriracha Construction and JCK Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sriracha Construction and JCK Hospitality
The main advantage of trading using opposite Sriracha Construction and JCK Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sriracha Construction 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.| Sriracha Construction vs. Asia Aviation Public | Sriracha Construction vs. Bangkok Dusit Medical | Sriracha Construction vs. Bangkok Expressway and | Sriracha Construction vs. Airports of Thailand |
| JCK Hospitality vs. Sriracha Construction Public | JCK Hospitality vs. Global Green Chemicals | JCK Hospitality vs. Symphony Communication Public | JCK Hospitality vs. Rich Sport 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |