Correlation Between Jeju Bank and APS Holdings
Can any of the company-specific risk be diversified away by investing in both Jeju Bank and APS Holdings 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 Jeju Bank and APS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Bank and APS Holdings, you can compare the effects of market volatilities on Jeju Bank and APS Holdings 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 Jeju Bank with a short position of APS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Bank and APS Holdings.
Diversification Opportunities for Jeju Bank and APS Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeju and APS is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Bank and APS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Holdings and Jeju Bank 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 Jeju Bank are associated (or correlated) with APS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Holdings has no effect on the direction of Jeju Bank i.e., Jeju Bank and APS Holdings go up and down completely randomly.
Pair Corralation between Jeju Bank and APS Holdings
Assuming the 90 days trading horizon Jeju Bank is expected to generate 1.39 times more return on investment than APS Holdings. However, Jeju Bank is 1.39 times more volatile than APS Holdings. It trades about 0.02 of its potential returns per unit of risk. APS Holdings is currently generating about -0.03 per unit of risk. If you would invest 947,629 in Jeju Bank on September 1, 2024 and sell it today you would lose (154,629) from holding Jeju Bank or give up 16.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jeju Bank vs. APS Holdings
Performance |
| Timeline |
| Jeju Bank |
| APS Holdings |
Jeju Bank and APS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Bank and APS Holdings
The main advantage of trading using opposite Jeju Bank and APS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Bank position performs unexpectedly, APS Holdings 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 APS Holdings will offset losses from the drop in APS Holdings' long position.| Jeju Bank vs. AptaBio Therapeutics | Jeju Bank vs. Daewoo SBI SPAC | Jeju Bank vs. Dream Security co | Jeju Bank vs. Microfriend |
| APS Holdings vs. Dgb Financial | APS Holdings vs. LG Electronics Pfd | APS Holdings vs. Jeju Bank | APS Holdings vs. DAEDUCK ELECTRONICS CoLtd |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |