Correlation Between Bangkok Chain and JKN Global

Can any of the company-specific risk be diversified away by investing in both Bangkok Chain and JKN Global 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 Bangkok Chain and JKN Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bangkok Chain Hospital and JKN Global Media, you can compare the effects of market volatilities on Bangkok Chain and JKN Global 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 Bangkok Chain with a short position of JKN Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Chain and JKN Global.

Diversification Opportunities for Bangkok Chain and JKN Global

-0.01

Correlation Coefficient

Bangkok Chain  JKN Global

Good diversification

The 3 months correlation between Bangkok and JKN is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Chain Hospital and JKN Global Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JKN Global Media and Bangkok Chain 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 Bangkok Chain Hospital are associated (or correlated) with JKN Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JKN Global Media has no effect on the direction of Bangkok Chain i.e., Bangkok Chain and JKN Global go up and down completely randomly.

Pair Corralation between Bangkok Chain and JKN Global

If you would invest  31.00  in JKN Global Media on September 15, 2024 and sell it today you would earn a total of  0.00  from holding JKN Global Media or generate 0.0% return on investment over 90 days.

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

Bangkok Chain Hospital  vs.  JKN Global Media

Bangkok Chain Hospital

Risk-Adjusted Performance

0 of 100

Very Weak

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

JKN Global Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JKN Global Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, JKN Global 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 Bangkok Chain and JKN Global

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

The idea behind Bangkok Chain Hospital and JKN Global Media 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.