Correlation Between Areeya Property and JCK International

Can any of the company-specific risk be diversified away by investing in both Areeya Property 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 Areeya Property and JCK International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Areeya Property Public and JCK International Public, you can compare the effects of market volatilities on Areeya Property 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 Areeya Property with a short position of JCK International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Areeya Property and JCK International.

Diversification Opportunities for Areeya Property and JCK International

0.76

Correlation Coefficient

Areeya Property  JCK International

Poor diversification

The 3 months correlation between Areeya and JCK is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Areeya Property 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 Areeya Property 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 Areeya Property 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 Areeya Property i.e., Areeya Property and JCK International go up and down completely randomly.

Pair Corralation between Areeya Property and JCK International

Given the investment horizon of 90 days Areeya Property Public is expected to generate 0.17 times more return on investment than JCK International. However, Areeya Property Public is 5.96 times less risky than JCK International. It trades about -0.12 of its potential returns per unit of risk. JCK International Public is currently generating about -0.29 per unit of risk. If you would invest  496.00  in Areeya Property Public on September 1, 2024 and sell it today you would lose (6.00) from holding Areeya Property Public or give up 1.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Areeya Property Public  vs.  JCK International Public

Areeya Property Public

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Areeya Property Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, Areeya Property disclosed solid returns over the last few months and may actually be approaching a breakup point.

JCK International Public

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JCK International Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, JCK International disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Areeya Property and JCK International

The main advantage of trading using opposite Areeya Property and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Areeya Property 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.

The idea behind Areeya Property Public and JCK International Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..