Correlation Between JCK International and Meta Public

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

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

Diversification Opportunities for JCK International and Meta Public

0.48

Correlation Coefficient

JCK International  Meta Public

Very weak diversification

The 3 months correlation between JCK and Meta is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding JCK International Public and Meta Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Public and JCK 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 JCK International Public are associated (or correlated) with Meta Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Public has no effect on the direction of JCK International i.e., JCK International and Meta Public go up and down completely randomly.

Pair Corralation between JCK International and Meta Public

Assuming the 90 days trading horizon JCK International Public is expected to generate 0.76 times more return on investment than Meta Public. However, JCK International Public is 1.31 times less risky than Meta Public. It trades about -0.01 of its potential returns per unit of risk. Meta Public is currently generating about -0.01 per unit of risk. If you would invest  20.00  in JCK International Public on December 20, 2024 and sell it today you would lose (3.00) from holding JCK International Public or give up 15.0% of portfolio value over 90 days.

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

JCK International Public  vs.  Meta Public

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 quite persistent forward-looking signals, JCK International is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Meta Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meta Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Meta Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with JCK International and Meta Public

The main advantage of trading using opposite JCK International and Meta Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCK International position performs unexpectedly, Meta Public 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 Meta Public will offset losses from the drop in Meta Public's long position.

The idea behind JCK International Public and Meta 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.