Correlation Between Asiana Airlines and CJ CheilJedang
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and CJ CheilJedang 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 Asiana Airlines and CJ CheilJedang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and CJ CheilJedang Corp, you can compare the effects of market volatilities on Asiana Airlines and CJ CheilJedang 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 Asiana Airlines with a short position of CJ CheilJedang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and CJ CheilJedang.
Diversification Opportunities for Asiana Airlines and CJ CheilJedang
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asiana and 097955 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and CJ CheilJedang Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ CheilJedang Corp and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with CJ CheilJedang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ CheilJedang Corp has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and CJ CheilJedang go up and down completely randomly.
Pair Corralation between Asiana Airlines and CJ CheilJedang
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 1.93 times more return on investment than CJ CheilJedang. However, Asiana Airlines is 1.93 times more volatile than CJ CheilJedang Corp. It trades about 0.29 of its potential returns per unit of risk. CJ CheilJedang Corp is currently generating about -0.26 per unit of risk. If you would invest 1,000,000 in Asiana Airlines on October 24, 2024 and sell it today you would earn a total of 56,000 from holding Asiana Airlines or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. CJ CheilJedang Corp
Performance |
| Timeline |
| Asiana Airlines |
| CJ CheilJedang Corp |
Asiana Airlines and CJ CheilJedang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and CJ CheilJedang
The main advantage of trading using opposite Asiana Airlines and CJ CheilJedang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, CJ CheilJedang 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 CJ CheilJedang will offset losses from the drop in CJ CheilJedang's long position.| Asiana Airlines vs. DB Insurance Co | Asiana Airlines vs. Samick Musical Instruments | Asiana Airlines vs. KakaoBank Corp | Asiana Airlines vs. Shinhan Financial Group |
| CJ CheilJedang vs. LG Household Healthcare | CJ CheilJedang vs. Incar Financial Service | CJ CheilJedang vs. Asiana Airlines | CJ CheilJedang vs. Koryo Credit Information |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |