Correlation Between JAS Asset and JCK International

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

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

Diversification Opportunities for JAS Asset and JCK International

0.6

Correlation Coefficient

JAS Asset  JCK International

Poor diversification

The 3 months correlation between JAS and JCK is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding JAS Asset PCL 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 JAS Asset 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 JAS Asset PCL 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 JAS Asset i.e., JAS Asset and JCK International go up and down completely randomly.

Pair Corralation between JAS Asset and JCK International

Given the investment horizon of 90 days JAS Asset PCL is expected to under-perform the JCK International. But the stock apears to be less risky and, when comparing its historical volatility, JAS Asset PCL is 3.67 times less risky than JCK International. The stock trades about -0.16 of its potential returns per unit of risk. The JCK International Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  24.00  in JCK International Public on December 1, 2024 and sell it today you would lose (5.00) from holding JCK International Public or give up 20.83% of portfolio value over 90 days.

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

JAS Asset PCL  vs.  JCK International Public

JAS Asset PCL

Risk-Adjusted Performance

Very Weak

Over the last 90 days JAS Asset PCL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

JCK International Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days JCK International Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with JAS Asset and JCK International

The main advantage of trading using opposite JAS Asset and JCK International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAS Asset 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 JAS Asset PCL 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..