Correlation Between CJ Seafood and Daebo Magnetic
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and Daebo Magnetic 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 Daebo Magnetic 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 Daebo Magnetic CoLtd, you can compare the effects of market volatilities on CJ Seafood and Daebo Magnetic 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 Daebo Magnetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Daebo Magnetic.
Diversification Opportunities for CJ Seafood and Daebo Magnetic
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 011150 and Daebo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and Daebo Magnetic CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daebo Magnetic 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 Daebo Magnetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daebo Magnetic CoLtd has no effect on the direction of CJ Seafood i.e., CJ Seafood and Daebo Magnetic go up and down completely randomly.
Pair Corralation between CJ Seafood and Daebo Magnetic
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 0.61 times more return on investment than Daebo Magnetic. However, CJ Seafood Corp is 1.63 times less risky than Daebo Magnetic. It trades about 0.22 of its potential returns per unit of risk. Daebo Magnetic CoLtd is currently generating about 0.0 per unit of risk. If you would invest 276,500 in CJ Seafood Corp on September 15, 2024 and sell it today you would earn a total of 38,000 from holding CJ Seafood Corp or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. Daebo Magnetic CoLtd
Performance |
| Timeline |
| CJ Seafood Corp |
| Daebo Magnetic CoLtd |
CJ Seafood and Daebo Magnetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Daebo Magnetic
The main advantage of trading using opposite CJ Seafood and Daebo Magnetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, Daebo Magnetic 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 Daebo Magnetic will offset losses from the drop in Daebo Magnetic'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 |
| Daebo Magnetic vs. KT Submarine Telecom | Daebo Magnetic vs. Hansol Homedeco Co | Daebo Magnetic vs. CJ Seafood Corp | Daebo Magnetic vs. Seoul Food Industrial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |