Correlation Between CJ Seafood and JETEMA
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and JETEMA 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 JETEMA 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 JETEMA Co, you can compare the effects of market volatilities on CJ Seafood and JETEMA 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 JETEMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and JETEMA.
Diversification Opportunities for CJ Seafood and JETEMA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 011150 and JETEMA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and JETEMA Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JETEMA 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 JETEMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JETEMA has no effect on the direction of CJ Seafood i.e., CJ Seafood and JETEMA go up and down completely randomly.
Pair Corralation between CJ Seafood and JETEMA
Assuming the 90 days trading horizon CJ Seafood Corp is expected to under-perform the JETEMA. In addition to that, CJ Seafood is 1.23 times more volatile than JETEMA Co. It trades about 0.0 of its total potential returns per unit of risk. JETEMA Co is currently generating about 0.02 per unit of volatility. If you would invest 1,885,000 in JETEMA Co on September 1, 2024 and sell it today you would earn a total of 64,000 from holding JETEMA Co or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. JETEMA Co
Performance |
| Timeline |
| CJ Seafood Corp |
| JETEMA |
CJ Seafood and JETEMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and JETEMA
The main advantage of trading using opposite CJ Seafood and JETEMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, JETEMA 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 JETEMA will offset losses from the drop in JETEMA's long position.| CJ Seafood vs. AptaBio Therapeutics | CJ Seafood vs. Daewoo SBI SPAC | CJ Seafood vs. Dream Security co | CJ Seafood vs. Microfriend |
| JETEMA vs. Sam Yang Foods | JETEMA vs. Daiyang Metal Co | JETEMA vs. Sempio Foods Co | JETEMA vs. Songwon Industrial Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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