Correlation Between GS Engineering and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both GS Engineering 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 GS Engineering and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Engineering Construction and CJ Seafood Corp, you can compare the effects of market volatilities on GS Engineering 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 GS Engineering with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Engineering and CJ Seafood.
Diversification Opportunities for GS Engineering and CJ Seafood
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 006360 and 011155 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding GS Engineering Construction 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 GS Engineering 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 GS Engineering Construction 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 GS Engineering i.e., GS Engineering and CJ Seafood go up and down completely randomly.
Pair Corralation between GS Engineering and CJ Seafood
Assuming the 90 days trading horizon GS Engineering Construction is expected to generate 0.57 times more return on investment than CJ Seafood. However, GS Engineering Construction is 1.75 times less risky than CJ Seafood. It trades about 0.08 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.0 per unit of risk. If you would invest 1,298,897 in GS Engineering Construction on September 1, 2024 and sell it today you would earn a total of 649,103 from holding GS Engineering Construction or generate 49.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Engineering Construction vs. CJ Seafood Corp
Performance |
| Timeline |
| GS Engineering Const |
| CJ Seafood Corp |
GS Engineering and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Engineering and CJ Seafood
The main advantage of trading using opposite GS Engineering and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Engineering 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.| GS Engineering vs. AptaBio Therapeutics | GS Engineering vs. Daewoo SBI SPAC | GS Engineering vs. Dream Security co | GS Engineering vs. Microfriend |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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