Correlation Between Daehan Synthetic and JC Chemical
Can any of the company-specific risk be diversified away by investing in both Daehan Synthetic and JC Chemical 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 Daehan Synthetic and JC Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daehan Synthetic Fiber and JC Chemical Co, you can compare the effects of market volatilities on Daehan Synthetic and JC Chemical 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 Daehan Synthetic with a short position of JC Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daehan Synthetic and JC Chemical.
Diversification Opportunities for Daehan Synthetic and JC Chemical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daehan and 137950 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Daehan Synthetic Fiber and JC Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JC Chemical and Daehan Synthetic 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 Daehan Synthetic Fiber are associated (or correlated) with JC Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JC Chemical has no effect on the direction of Daehan Synthetic i.e., Daehan Synthetic and JC Chemical go up and down completely randomly.
Pair Corralation between Daehan Synthetic and JC Chemical
Assuming the 90 days trading horizon Daehan Synthetic Fiber is expected to generate 0.17 times more return on investment than JC Chemical. However, Daehan Synthetic Fiber is 5.97 times less risky than JC Chemical. It trades about -0.11 of its potential returns per unit of risk. JC Chemical Co is currently generating about -0.16 per unit of risk. If you would invest 11,800,000 in Daehan Synthetic Fiber on September 3, 2024 and sell it today you would lose (190,000) from holding Daehan Synthetic Fiber or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daehan Synthetic Fiber vs. JC Chemical Co
Performance |
| Timeline |
| Daehan Synthetic Fiber |
| JC Chemical |
Daehan Synthetic and JC Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daehan Synthetic and JC Chemical
The main advantage of trading using opposite Daehan Synthetic and JC Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daehan Synthetic position performs unexpectedly, JC Chemical 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 JC Chemical will offset losses from the drop in JC Chemical's long position.| Daehan Synthetic vs. AptaBio Therapeutics | Daehan Synthetic vs. Daewoo SBI SPAC | Daehan Synthetic vs. Dream Security co | Daehan Synthetic vs. Microfriend |
| JC Chemical vs. Busan Industrial Co | JC Chemical vs. UNISEM Co | JC Chemical vs. RPBio Inc | JC Chemical 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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