Correlation Between CJ Seafood and Mgame Corp
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and Mgame Corp 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 Mgame Corp 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 Mgame Corp, you can compare the effects of market volatilities on CJ Seafood and Mgame Corp 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 Mgame Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Mgame Corp.
Diversification Opportunities for CJ Seafood and Mgame Corp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between 011150 and Mgame is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and Mgame Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mgame 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 Mgame Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mgame Corp has no effect on the direction of CJ Seafood i.e., CJ Seafood and Mgame Corp go up and down completely randomly.
Pair Corralation between CJ Seafood and Mgame Corp
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 1.29 times more return on investment than Mgame Corp. However, CJ Seafood is 1.29 times more volatile than Mgame Corp. It trades about 0.01 of its potential returns per unit of risk. Mgame Corp is currently generating about -0.02 per unit of risk. If you would invest 330,500 in CJ Seafood Corp on October 26, 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 | 96.22% |
| Values | Daily Returns |
CJ Seafood Corp vs. Mgame Corp
Performance |
| Timeline |
| CJ Seafood Corp |
| Mgame Corp |
CJ Seafood and Mgame Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Mgame Corp
The main advantage of trading using opposite CJ Seafood and Mgame Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, Mgame Corp 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 Mgame Corp will offset losses from the drop in Mgame Corp'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 |
| Mgame Corp vs. TS Investment Corp | Mgame Corp vs. Nh Investment And | Mgame Corp vs. Atinum Investment Co | Mgame Corp vs. Daejung Chemicals Metals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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