Correlation Between CJ Seafood and DukSan Neolux
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and DukSan Neolux 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 DukSan Neolux 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 DukSan Neolux CoLtd, you can compare the effects of market volatilities on CJ Seafood and DukSan Neolux 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 DukSan Neolux. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and DukSan Neolux.
Diversification Opportunities for CJ Seafood and DukSan Neolux
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 011150 and DukSan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and DukSan Neolux CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DukSan Neolux CoLtd 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 DukSan Neolux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DukSan Neolux CoLtd has no effect on the direction of CJ Seafood i.e., CJ Seafood and DukSan Neolux go up and down completely randomly.
Pair Corralation between CJ Seafood and DukSan Neolux
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 1.24 times more return on investment than DukSan Neolux. However, CJ Seafood is 1.24 times more volatile than DukSan Neolux CoLtd. It trades about 0.02 of its potential returns per unit of risk. DukSan Neolux CoLtd is currently generating about -0.06 per unit of risk. If you would invest 279,000 in CJ Seafood Corp on September 14, 2024 and sell it today you would earn a total of 11,000 from holding CJ Seafood Corp or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. DukSan Neolux CoLtd
Performance |
| Timeline |
| CJ Seafood Corp |
| DukSan Neolux CoLtd |
CJ Seafood and DukSan Neolux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and DukSan Neolux
The main advantage of trading using opposite CJ Seafood and DukSan Neolux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, DukSan Neolux 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 DukSan Neolux will offset losses from the drop in DukSan Neolux's long position.| CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. SK Hynix | CJ Seafood vs. POSCO Holdings |
| DukSan Neolux vs. Samyang Foods Co | DukSan Neolux vs. Dongwon Metal Co | DukSan Neolux vs. FoodNamoo | DukSan Neolux vs. CJ Seafood Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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