Correlation Between CJ Seafood and Elentec Co
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and Elentec Co 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 Elentec Co 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 Elentec Co, you can compare the effects of market volatilities on CJ Seafood and Elentec Co 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 Elentec Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Elentec Co.
Diversification Opportunities for CJ Seafood and Elentec Co
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 011155 and Elentec is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and Elentec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elentec Co 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 Elentec Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elentec Co has no effect on the direction of CJ Seafood i.e., CJ Seafood and Elentec Co go up and down completely randomly.
Pair Corralation between CJ Seafood and Elentec Co
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 1.34 times more return on investment than Elentec Co. However, CJ Seafood is 1.34 times more volatile than Elentec Co. It trades about 0.0 of its potential returns per unit of risk. Elentec Co is currently generating about -0.04 per unit of risk. If you would invest 2,500,000 in CJ Seafood Corp on September 13, 2024 and sell it today you would lose (690,000) from holding CJ Seafood Corp or give up 27.6% 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. Elentec Co
Performance |
| Timeline |
| CJ Seafood Corp |
| Elentec Co |
CJ Seafood and Elentec Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Elentec Co
The main advantage of trading using opposite CJ Seafood and Elentec Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, Elentec Co 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 Elentec Co will offset losses from the drop in Elentec Co's long position.| CJ Seafood vs. Guyoung Technology Co | CJ Seafood vs. Polaris Office Corp | CJ Seafood vs. AeroSpace Technology of | CJ Seafood vs. Eugene Technology CoLtd |
| Elentec Co vs. Lake Materials Co | Elentec Co vs. CJ Seafood Corp | Elentec Co vs. Sewoon Medical Co | Elentec Co vs. Iljin Materials 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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