Correlation Between Jeju Bank and Coloray International
Can any of the company-specific risk be diversified away by investing in both Jeju Bank and Coloray International 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 Coloray International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Bank and Coloray International Investment, you can compare the effects of market volatilities on Jeju Bank and Coloray International 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 Coloray International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Bank and Coloray International.
Diversification Opportunities for Jeju Bank and Coloray International
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jeju and Coloray is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Bank and Coloray International Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloray International 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 Coloray International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloray International has no effect on the direction of Jeju Bank i.e., Jeju Bank and Coloray International go up and down completely randomly.
Pair Corralation between Jeju Bank and Coloray International
Assuming the 90 days trading horizon Jeju Bank is expected to under-perform the Coloray International. But the stock apears to be less risky and, when comparing its historical volatility, Jeju Bank is 2.46 times less risky than Coloray International. The stock trades about -0.19 of its potential returns per unit of risk. The Coloray International Investment is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 61,400 in Coloray International Investment on November 7, 2024 and sell it today you would earn a total of 15,300 from holding Coloray International Investment or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Jeju Bank vs. Coloray International Investme
Performance |
| Timeline |
| Jeju Bank |
| Coloray International |
Jeju Bank and Coloray International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Bank and Coloray International
The main advantage of trading using opposite Jeju Bank and Coloray International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Bank position performs unexpectedly, Coloray International 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 Coloray International will offset losses from the drop in Coloray International's long position.| Jeju Bank vs. AptaBio Therapeutics | Jeju Bank vs. Daewoo SBI SPAC | Jeju Bank vs. Dream Security co | Jeju Bank vs. Microfriend |
| Coloray International vs. Settlebank | Coloray International vs. Hankukpackage Co | Coloray International vs. Narae Nanotech Corp | Coloray International vs. FNSTech Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |