Correlation Between Hansol Chemica and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Hansol Chemica and Jb Financial 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 Hansol Chemica and Jb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansol Chemica and Jb Financial, you can compare the effects of market volatilities on Hansol Chemica and Jb Financial 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 Hansol Chemica with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Chemica and Jb Financial.
Diversification Opportunities for Hansol Chemica and Jb Financial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hansol and 175330 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Chemica and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and Hansol Chemica 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 Hansol Chemica are associated (or correlated) with Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of Hansol Chemica i.e., Hansol Chemica and Jb Financial go up and down completely randomly.
Pair Corralation between Hansol Chemica and Jb Financial
Assuming the 90 days trading horizon Hansol Chemica is expected to generate 1.6 times more return on investment than Jb Financial. However, Hansol Chemica is 1.6 times more volatile than Jb Financial. It trades about 0.47 of its potential returns per unit of risk. Jb Financial is currently generating about -0.24 per unit of risk. If you would invest 9,270,000 in Hansol Chemica on November 28, 2024 and sell it today you would earn a total of 2,320,000 from holding Hansol Chemica or generate 25.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Chemica vs. Jb Financial
Performance |
| Timeline |
| Hansol Chemica |
| Jb Financial |
Hansol Chemica and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Chemica and Jb Financial
The main advantage of trading using opposite Hansol Chemica and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Chemica position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| Hansol Chemica vs. Pan Entertainment Co | Hansol Chemica vs. MEDIANA CoLtd | Hansol Chemica vs. Polaris Office Corp | Hansol Chemica vs. Mgame Corp |
| Jb Financial vs. Hannong Chemicals | Jb Financial vs. Hanil Chemical Ind | Jb Financial vs. Hanyang Digitech Co | Jb Financial vs. Amogreentech 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |