Correlation Between CJ Seafood and NH SPAC
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and NH SPAC 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 NH SPAC 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 NH SPAC 8, you can compare the effects of market volatilities on CJ Seafood and NH SPAC 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 NH SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and NH SPAC.
Diversification Opportunities for CJ Seafood and NH SPAC
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 011150 and 225570 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and NH SPAC 8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH SPAC 8 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 NH SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH SPAC 8 has no effect on the direction of CJ Seafood i.e., CJ Seafood and NH SPAC go up and down completely randomly.
Pair Corralation between CJ Seafood and NH SPAC
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 0.95 times more return on investment than NH SPAC. However, CJ Seafood Corp is 1.05 times less risky than NH SPAC. It trades about 0.0 of its potential returns per unit of risk. NH SPAC 8 is currently generating about -0.02 per unit of risk. If you would invest 370,500 in CJ Seafood Corp on September 1, 2024 and sell it today you would lose (80,000) from holding CJ Seafood Corp or give up 21.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. NH SPAC 8
Performance |
| Timeline |
| CJ Seafood Corp |
| NH SPAC 8 |
CJ Seafood and NH SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and NH SPAC
The main advantage of trading using opposite CJ Seafood and NH SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, NH SPAC 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 NH SPAC will offset losses from the drop in NH SPAC's long position.| CJ Seafood vs. AptaBio Therapeutics | CJ Seafood vs. Daewoo SBI SPAC | CJ Seafood vs. Dream Security co | CJ Seafood vs. Microfriend |
| NH SPAC vs. Hansol Homedeco Co | NH SPAC vs. Ecoplastic | NH SPAC vs. SK Telecom Co | NH SPAC vs. Cuckoo Homesys 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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