Correlation Between CJ Seafood and SeAH Besteel
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and SeAH Besteel 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 CJ Seafood and SeAH Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CJ Seafood Corp and SeAH Besteel Corp, you can compare the effects of market volatilities on CJ Seafood and SeAH Besteel 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 CJ Seafood with a short position of SeAH Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and SeAH Besteel.
Diversification Opportunities for CJ Seafood and SeAH Besteel
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 011150 and SeAH is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and SeAH Besteel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Besteel Corp and CJ Seafood 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 CJ Seafood Corp are associated (or correlated) with SeAH Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Besteel Corp has no effect on the direction of CJ Seafood i.e., CJ Seafood and SeAH Besteel go up and down completely randomly.
Pair Corralation between CJ Seafood and SeAH Besteel
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 1.18 times more return on investment than SeAH Besteel. However, CJ Seafood is 1.18 times more volatile than SeAH Besteel Corp. It trades about 0.09 of its potential returns per unit of risk. SeAH Besteel Corp is currently generating about 0.0 per unit of risk. If you would invest 290,500 in CJ Seafood Corp on October 29, 2024 and sell it today you would earn a total of 7,000 from holding CJ Seafood Corp or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. SeAH Besteel Corp
Performance |
| Timeline |
| CJ Seafood Corp |
| SeAH Besteel Corp |
CJ Seafood and SeAH Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and SeAH Besteel
The main advantage of trading using opposite CJ Seafood and SeAH Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, SeAH Besteel 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 SeAH Besteel will offset losses from the drop in SeAH Besteel's long position.| CJ Seafood vs. BIT Computer Co | CJ Seafood vs. Seers Technology | CJ Seafood vs. Dong A Steel Technology | CJ Seafood vs. Daesung Hi Tech Co |
| SeAH Besteel vs. KB Financial Group | SeAH Besteel vs. Shinhan Financial Group | SeAH Besteel vs. Hana Financial | SeAH Besteel vs. Woori Financial Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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