Correlation Between Hankook Furniture and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Hankook Furniture and Jb Financial 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 Hankook Furniture and Jb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankook Furniture Co and Jb Financial, you can compare the effects of market volatilities on Hankook Furniture and Jb Financial 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 Hankook Furniture with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankook Furniture and Jb Financial.
Diversification Opportunities for Hankook Furniture and Jb Financial
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hankook and 175330 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hankook Furniture Co and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and Hankook Furniture 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 Hankook Furniture Co are associated (or correlated) with Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of Hankook Furniture i.e., Hankook Furniture and Jb Financial go up and down completely randomly.
Pair Corralation between Hankook Furniture and Jb Financial
Assuming the 90 days trading horizon Hankook Furniture Co is expected to under-perform the Jb Financial. But the stock apears to be less risky and, when comparing its historical volatility, Hankook Furniture Co is 2.17 times less risky than Jb Financial. The stock trades about -0.21 of its potential returns per unit of risk. The Jb Financial is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,746,000 in Jb Financial on October 16, 2024 and sell it today you would lose (11,000) from holding Jb Financial or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankook Furniture Co vs. Jb Financial
Performance |
| Timeline |
| Hankook Furniture |
| Jb Financial |
Hankook Furniture and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankook Furniture and Jb Financial
The main advantage of trading using opposite Hankook Furniture and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankook Furniture position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| Hankook Furniture vs. CKH Food Health | Hankook Furniture vs. Chorokbaem Healthcare Co | Hankook Furniture vs. ChipsMedia | Hankook Furniture vs. LG Household Healthcare |
| Jb Financial vs. TS Investment Corp | Jb Financial vs. SBI Investment KOREA | Jb Financial vs. Kakao Games Corp | Jb Financial vs. E Investment Development |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |