Correlation Between KCC and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both KCC and CJ Seafood 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 KCC and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KCC Corporation and CJ Seafood Corp, you can compare the effects of market volatilities on KCC and CJ Seafood 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 KCC with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCC and CJ Seafood.
Diversification Opportunities for KCC and CJ Seafood
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KCC and 011155 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding KCC Corp. and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp and KCC 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 KCC Corporation are associated (or correlated) with CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of KCC i.e., KCC and CJ Seafood go up and down completely randomly.
Pair Corralation between KCC and CJ Seafood
Assuming the 90 days trading horizon KCC Corporation is expected to generate 1.77 times more return on investment than CJ Seafood. However, KCC is 1.77 times more volatile than CJ Seafood Corp. It trades about -0.15 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about -0.4 per unit of risk. If you would invest 26,250,000 in KCC Corporation on September 1, 2024 and sell it today you would lose (2,100,000) from holding KCC Corporation or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KCC Corp. vs. CJ Seafood Corp
Performance |
| Timeline |
| KCC Corporation |
| CJ Seafood Corp |
KCC and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCC and CJ Seafood
The main advantage of trading using opposite KCC and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCC position performs unexpectedly, CJ Seafood 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 CJ Seafood will offset losses from the drop in CJ Seafood's long position.| KCC vs. BNK Financial Group | KCC vs. Duksan Hi Metal | KCC vs. Dongbang Transport Logistics | KCC vs. Innowireless Co |
| CJ Seafood vs. Busan Industrial Co | CJ Seafood vs. Busan Ind | CJ Seafood vs. Mirae Asset Daewoo | CJ Seafood vs. Finebesteel |
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 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..
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |