Correlation Between Daekyung Machinery and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both Daekyung Machinery and Jahwa Electron 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 Daekyung Machinery and Jahwa Electron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daekyung Machinery Engineering and Jahwa Electron, you can compare the effects of market volatilities on Daekyung Machinery and Jahwa Electron 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 Daekyung Machinery with a short position of Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daekyung Machinery and Jahwa Electron.
Diversification Opportunities for Daekyung Machinery and Jahwa Electron
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daekyung and Jahwa is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Daekyung Machinery Engineering and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron and Daekyung Machinery 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 Daekyung Machinery Engineering are associated (or correlated) with Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of Daekyung Machinery i.e., Daekyung Machinery and Jahwa Electron go up and down completely randomly.
Pair Corralation between Daekyung Machinery and Jahwa Electron
Assuming the 90 days trading horizon Daekyung Machinery Engineering is expected to generate 1.58 times more return on investment than Jahwa Electron. However, Daekyung Machinery is 1.58 times more volatile than Jahwa Electron. It trades about -0.01 of its potential returns per unit of risk. Jahwa Electron is currently generating about -0.08 per unit of risk. If you would invest 92,500 in Daekyung Machinery Engineering on September 1, 2024 and sell it today you would lose (41,000) from holding Daekyung Machinery Engineering or give up 44.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.45% |
| Values | Daily Returns |
Daekyung Machinery Engineering vs. Jahwa Electron
Performance |
| Timeline |
| Daekyung Machinery |
| Jahwa Electron |
Daekyung Machinery and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daekyung Machinery and Jahwa Electron
The main advantage of trading using opposite Daekyung Machinery and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daekyung Machinery position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| Daekyung Machinery vs. AptaBio Therapeutics | Daekyung Machinery vs. Daewoo SBI SPAC | Daekyung Machinery vs. Dream Security co | Daekyung Machinery vs. Microfriend |
| Jahwa Electron vs. CU Tech Corp | Jahwa Electron vs. Shinsegae Information Communication | Jahwa Electron vs. Nice Information Telecommunication | Jahwa Electron vs. Mobileleader CoLtd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |