Correlation Between CJ Seafood and Samhyun Steel
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and Samhyun Steel 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 Samhyun Steel 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 Samhyun Steel Co, you can compare the effects of market volatilities on CJ Seafood and Samhyun Steel 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 Samhyun Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Samhyun Steel.
Diversification Opportunities for CJ Seafood and Samhyun Steel
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 011150 and Samhyun is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and Samhyun Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun Steel 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 Samhyun Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun Steel has no effect on the direction of CJ Seafood i.e., CJ Seafood and Samhyun Steel go up and down completely randomly.
Pair Corralation between CJ Seafood and Samhyun Steel
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 2.41 times more return on investment than Samhyun Steel. However, CJ Seafood is 2.41 times more volatile than Samhyun Steel Co. It trades about 0.01 of its potential returns per unit of risk. Samhyun Steel Co is currently generating about 0.02 per unit of risk. If you would invest 308,500 in CJ Seafood Corp on September 25, 2024 and sell it today you would lose (4,500) from holding CJ Seafood Corp or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. Samhyun Steel Co
Performance |
| Timeline |
| CJ Seafood Corp |
| Samhyun Steel |
CJ Seafood and Samhyun Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Samhyun Steel
The main advantage of trading using opposite CJ Seafood and Samhyun Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, Samhyun Steel 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 Samhyun Steel will offset losses from the drop in Samhyun Steel's long position.| CJ Seafood vs. DONGKUK TED METAL | CJ Seafood vs. Jeong Moon Information | CJ Seafood vs. Inzi Display CoLtd | CJ Seafood vs. Sangsin Energy Display |
| Samhyun Steel vs. Keum Kang Steel | Samhyun Steel vs. Tplex Co | Samhyun Steel vs. PJ Metal Co | Samhyun Steel vs. Gyeongnam Steel 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 CEOs Directory module to screen CEOs from public companies around the world.
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