Correlation Between CJ Seafood and NewFlex Technology
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and NewFlex Technology 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 NewFlex Technology 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 NewFlex Technology Co, you can compare the effects of market volatilities on CJ Seafood and NewFlex Technology 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 NewFlex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and NewFlex Technology.
Diversification Opportunities for CJ Seafood and NewFlex Technology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 011150 and NewFlex is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and NewFlex Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFlex Technology 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 NewFlex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFlex Technology has no effect on the direction of CJ Seafood i.e., CJ Seafood and NewFlex Technology go up and down completely randomly.
Pair Corralation between CJ Seafood and NewFlex Technology
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 0.68 times more return on investment than NewFlex Technology. However, CJ Seafood Corp is 1.48 times less risky than NewFlex Technology. It trades about -0.18 of its potential returns per unit of risk. NewFlex Technology Co is currently generating about -0.24 per unit of risk. If you would invest 347,000 in CJ Seafood Corp on August 30, 2024 and sell it today you would lose (48,000) from holding CJ Seafood Corp or give up 13.83% 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. NewFlex Technology Co
Performance |
| Timeline |
| CJ Seafood Corp |
| NewFlex Technology |
CJ Seafood and NewFlex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and NewFlex Technology
The main advantage of trading using opposite CJ Seafood and NewFlex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, NewFlex Technology 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 NewFlex Technology will offset losses from the drop in NewFlex Technology's long position.| CJ Seafood vs. AptaBio Therapeutics | CJ Seafood vs. Daewoo SBI SPAC | CJ Seafood vs. Dream Security co | CJ Seafood vs. Microfriend |
| NewFlex Technology vs. Daou Data Corp | NewFlex Technology vs. Busan Industrial Co | NewFlex Technology vs. Busan Ind | NewFlex Technology vs. Shinhan WTI Futures |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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