Correlation Between Automobile and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Automobile 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 Automobile and Jb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automobile Pc and Jb Financial, you can compare the effects of market volatilities on Automobile 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 Automobile with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automobile and Jb Financial.
Diversification Opportunities for Automobile and Jb Financial
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Automobile and 175330 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Automobile Pc and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and Automobile 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 Automobile Pc 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 Automobile i.e., Automobile and Jb Financial go up and down completely randomly.
Pair Corralation between Automobile and Jb Financial
Assuming the 90 days trading horizon Automobile Pc is expected to under-perform the Jb Financial. In addition to that, Automobile is 1.58 times more volatile than Jb Financial. It trades about -0.05 of its total potential returns per unit of risk. Jb Financial is currently generating about 0.07 per unit of volatility. If you would invest 986,181 in Jb Financial on October 16, 2024 and sell it today you would earn a total of 748,819 from holding Jb Financial or generate 75.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automobile Pc vs. Jb Financial
Performance |
| Timeline |
| Automobile Pc |
| Jb Financial |
Automobile and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automobile and Jb Financial
The main advantage of trading using opposite Automobile and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automobile 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.| Automobile vs. BNK Financial Group | Automobile vs. Lotte Non Life Insurance | Automobile vs. Daesung Industrial Co | Automobile vs. Jb Financial |
| Jb Financial vs. TS Investment Corp | Jb Financial vs. SBI Investment KOREA | Jb Financial vs. Kakao Games Corp | Jb Financial vs. E Investment Development |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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