Correlation Between CJ Seafood and WooriNet
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and WooriNet 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 WooriNet 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 WooriNet, you can compare the effects of market volatilities on CJ Seafood and WooriNet 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 WooriNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and WooriNet.
Diversification Opportunities for CJ Seafood and WooriNet
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 011150 and WooriNet is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and WooriNet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WooriNet 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 WooriNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WooriNet has no effect on the direction of CJ Seafood i.e., CJ Seafood and WooriNet go up and down completely randomly.
Pair Corralation between CJ Seafood and WooriNet
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 0.41 times more return on investment than WooriNet. However, CJ Seafood Corp is 2.43 times less risky than WooriNet. It trades about 0.04 of its potential returns per unit of risk. WooriNet is currently generating about -0.21 per unit of risk. If you would invest 295,000 in CJ Seafood Corp on November 2, 2024 and sell it today you would earn a total of 2,500 from holding CJ Seafood Corp or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. WooriNet
Performance |
| Timeline |
| CJ Seafood Corp |
| WooriNet |
CJ Seafood and WooriNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and WooriNet
The main advantage of trading using opposite CJ Seafood and WooriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, WooriNet 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 WooriNet will offset losses from the drop in WooriNet's long position.| CJ Seafood vs. Dongkuk Structures Construction | CJ Seafood vs. Hanshin Construction Co | CJ Seafood vs. Air Busan Co | CJ Seafood vs. Tway Air Co |
| WooriNet vs. Seojin System CoLtd | WooriNet vs. Ubiquoss Holdings | WooriNet vs. Asia Pacific Satellite | WooriNet vs. Opticis Company Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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