Correlation Between Hansol Chemical and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Hansol Chemical 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 Chemical 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 Chemical Co and Jb Financial, you can compare the effects of market volatilities on Hansol Chemical 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 Chemical with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Chemical and Jb Financial.
Diversification Opportunities for Hansol Chemical and Jb Financial
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hansol and 175330 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Chemical Co and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and Hansol Chemical 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 Chemical Co 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 Chemical i.e., Hansol Chemical and Jb Financial go up and down completely randomly.
Pair Corralation between Hansol Chemical and Jb Financial
Assuming the 90 days trading horizon Hansol Chemical Co is expected to under-perform the Jb Financial. In addition to that, Hansol Chemical is 1.3 times more volatile than Jb Financial. It trades about -0.07 of its total potential returns per unit of risk. Jb Financial is currently generating about 0.0 per unit of volatility. If you would invest 1,834,000 in Jb Financial on September 13, 2024 and sell it today you would lose (21,000) from holding Jb Financial or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Chemical Co vs. Jb Financial
Performance |
| Timeline |
| Hansol Chemical |
| Jb Financial |
Hansol Chemical and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Chemical and Jb Financial
The main advantage of trading using opposite Hansol Chemical and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Chemical 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 Chemical vs. Woorim Machinery Co | Hansol Chemical vs. Shinsegae Engineering Construction | Hansol Chemical vs. Keyang Electric Machinery | Hansol Chemical vs. Nable Communications |
| Jb Financial vs. KB Financial Group | Jb Financial vs. Shinhan Financial Group | Jb Financial vs. Hana Financial | Jb Financial vs. Woori Financial Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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