Correlation Between CJ Seafood and Taegu Broadcasting
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and Taegu Broadcasting 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 Taegu Broadcasting 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 Taegu Broadcasting, you can compare the effects of market volatilities on CJ Seafood and Taegu Broadcasting 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 Taegu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Taegu Broadcasting.
Diversification Opportunities for CJ Seafood and Taegu Broadcasting
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between 011150 and Taegu is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and Taegu Broadcasting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taegu Broadcasting 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 Taegu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taegu Broadcasting has no effect on the direction of CJ Seafood i.e., CJ Seafood and Taegu Broadcasting go up and down completely randomly.
Pair Corralation between CJ Seafood and Taegu Broadcasting
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 2.01 times more return on investment than Taegu Broadcasting. However, CJ Seafood is 2.01 times more volatile than Taegu Broadcasting. It trades about 0.01 of its potential returns per unit of risk. Taegu Broadcasting is currently generating about -0.02 per unit of risk. If you would invest 330,500 in CJ Seafood Corp on October 27, 2024 and sell it today you would lose (33,000) from holding CJ Seafood Corp or give up 9.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. Taegu Broadcasting
Performance |
| Timeline |
| CJ Seafood Corp |
| Taegu Broadcasting |
CJ Seafood and Taegu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Taegu Broadcasting
The main advantage of trading using opposite CJ Seafood and Taegu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, Taegu Broadcasting 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 Taegu Broadcasting will offset losses from the drop in Taegu Broadcasting's long position.| CJ Seafood vs. KB Financial Group | CJ Seafood vs. Shinhan Financial Group | CJ Seafood vs. Hana Financial | CJ Seafood vs. Woori Financial Group |
| Taegu Broadcasting vs. Bookook Steel | Taegu Broadcasting vs. Seah Steel Corp | Taegu Broadcasting vs. Wonil Special Steel | Taegu Broadcasting vs. Homecast CoLtd |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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