Correlation Between CJ Seafood and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both CJ Seafood 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 CJ Seafood and CJ Seafood 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 CJ Seafood Corp, you can compare the effects of market volatilities on CJ Seafood 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 CJ Seafood with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and CJ Seafood.
Diversification Opportunities for CJ Seafood and CJ Seafood
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 011150 and 011155 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp 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 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 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 CJ Seafood i.e., CJ Seafood and CJ Seafood go up and down completely randomly.
Pair Corralation between CJ Seafood and CJ Seafood
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 1.6 times more return on investment than CJ Seafood. However, CJ Seafood is 1.6 times more volatile than CJ Seafood Corp. It trades about -0.2 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about -0.39 per unit of risk. If you would invest 318,500 in CJ Seafood Corp on August 31, 2024 and sell it today you would lose (28,000) from holding CJ Seafood Corp or give up 8.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. CJ Seafood Corp
Performance |
| Timeline |
| CJ Seafood Corp |
| CJ Seafood Corp |
CJ Seafood and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and CJ Seafood
The main advantage of trading using opposite CJ Seafood and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood 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.| CJ Seafood vs. AptaBio Therapeutics | CJ Seafood vs. Daewoo SBI SPAC | CJ Seafood vs. Dream Security co | CJ Seafood 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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