Correlation Between Anam Electronics and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Anam Electronics 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 Anam Electronics and Jb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anam Electronics Co and Jb Financial, you can compare the effects of market volatilities on Anam Electronics 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 Anam Electronics with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anam Electronics and Jb Financial.
Diversification Opportunities for Anam Electronics and Jb Financial
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anam and 175330 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Anam Electronics Co and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and Anam Electronics 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 Anam Electronics 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 Anam Electronics i.e., Anam Electronics and Jb Financial go up and down completely randomly.
Pair Corralation between Anam Electronics and Jb Financial
Assuming the 90 days trading horizon Anam Electronics Co is expected to under-perform the Jb Financial. In addition to that, Anam Electronics is 1.34 times more volatile than Jb Financial. It trades about 0.0 of its total potential returns per unit of risk. Jb Financial is currently generating about 0.03 per unit of volatility. If you would invest 1,650,000 in Jb Financial on October 14, 2024 and sell it today you would earn a total of 39,000 from holding Jb Financial or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anam Electronics Co vs. Jb Financial
Performance |
| Timeline |
| Anam Electronics |
| Jb Financial |
Anam Electronics and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anam Electronics and Jb Financial
The main advantage of trading using opposite Anam Electronics and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anam Electronics 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.| Anam Electronics vs. Digital Power Communications | Anam Electronics vs. Lotte Data Communication | Anam Electronics vs. Daol Investment Securities | Anam Electronics vs. Daishin Information Communications |
| Jb Financial vs. Dongbu Insurance Co | Jb Financial vs. Anam Electronics Co | Jb Financial vs. Taegu Broadcasting | Jb Financial vs. Dongbang Transport Logistics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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