Correlation Between CJ Seafood and Kakaopay Corp
Can any of the company-specific risk be diversified away by investing in both CJ Seafood and Kakaopay Corp 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 Kakaopay Corp 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 kakaopay Corp, you can compare the effects of market volatilities on CJ Seafood and Kakaopay Corp 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 Kakaopay Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Kakaopay Corp.
Diversification Opportunities for CJ Seafood and Kakaopay Corp
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 011155 and Kakaopay is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and kakaopay Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on kakaopay Corp 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 Kakaopay Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of kakaopay Corp has no effect on the direction of CJ Seafood i.e., CJ Seafood and Kakaopay Corp go up and down completely randomly.
Pair Corralation between CJ Seafood and Kakaopay Corp
Assuming the 90 days trading horizon CJ Seafood Corp is expected to under-perform the Kakaopay Corp. But the stock apears to be less risky and, when comparing its historical volatility, CJ Seafood Corp is 1.11 times less risky than Kakaopay Corp. The stock trades about -0.04 of its potential returns per unit of risk. The kakaopay Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,850,000 in kakaopay Corp on September 13, 2024 and sell it today you would earn a total of 190,000 from holding kakaopay Corp or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
CJ Seafood Corp vs. kakaopay Corp
Performance |
| Timeline |
| CJ Seafood Corp |
| kakaopay Corp |
CJ Seafood and Kakaopay Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Kakaopay Corp
The main advantage of trading using opposite CJ Seafood and Kakaopay Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood position performs unexpectedly, Kakaopay Corp 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 Kakaopay Corp will offset losses from the drop in Kakaopay Corp'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 |
| Kakaopay Corp vs. CJ Seafood Corp | Kakaopay Corp vs. Seoul Food Industrial | Kakaopay Corp vs. Cots Technology Co | Kakaopay Corp vs. CU Tech 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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