Correlation Between TH International and Just Kitchen
Can any of the company-specific risk be diversified away by investing in both TH International and Just Kitchen 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 TH International and Just Kitchen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TH International Limited and Just Kitchen Holdings, you can compare the effects of market volatilities on TH International and Just Kitchen 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 TH International with a short position of Just Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of TH International and Just Kitchen.
Diversification Opportunities for TH International and Just Kitchen
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between THCH and Just is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding TH International Limited and Just Kitchen Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Kitchen Holdings and TH International 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 TH International Limited are associated (or correlated) with Just Kitchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Kitchen Holdings has no effect on the direction of TH International i.e., TH International and Just Kitchen go up and down completely randomly.
Pair Corralation between TH International and Just Kitchen
If you would invest 89.00 in TH International Limited on September 3, 2024 and sell it today you would lose (1.00) from holding TH International Limited or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
TH International Limited vs. Just Kitchen Holdings
Performance |
| Timeline |
| TH International |
| Just Kitchen Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TH International and Just Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TH International and Just Kitchen
The main advantage of trading using opposite TH International and Just Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TH International position performs unexpectedly, Just Kitchen 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 Just Kitchen will offset losses from the drop in Just Kitchen's long position.| TH International vs. Highway Holdings Limited | TH International vs. QCR Holdings | TH International vs. Partner Communications | TH International vs. Acumen Pharmaceuticals |
| Just Kitchen vs. Alsea SAB de | Just Kitchen vs. Marstons PLC | Just Kitchen vs. Bagger Daves Burger | Just Kitchen vs. Marstons PLC |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |