Correlation Between PLAYWITH and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both PLAYWITH and CJ Seafood 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 PLAYWITH and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and CJ Seafood Corp, you can compare the effects of market volatilities on PLAYWITH and CJ Seafood 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 PLAYWITH with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and CJ Seafood.
Diversification Opportunities for PLAYWITH and CJ Seafood
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between PLAYWITH and 011150 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp and PLAYWITH 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 PLAYWITH are associated (or correlated) with CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of PLAYWITH i.e., PLAYWITH and CJ Seafood go up and down completely randomly.
Pair Corralation between PLAYWITH and CJ Seafood
Assuming the 90 days trading horizon PLAYWITH is expected to under-perform the CJ Seafood. In addition to that, PLAYWITH is 1.07 times more volatile than CJ Seafood Corp. It trades about -0.03 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.0 per unit of volatility. If you would invest 348,500 in CJ Seafood Corp on November 6, 2024 and sell it today you would lose (61,000) from holding CJ Seafood Corp or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWITH vs. CJ Seafood Corp
Performance |
| Timeline |
| PLAYWITH |
| CJ Seafood Corp |
PLAYWITH and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and CJ Seafood
The main advantage of trading using opposite PLAYWITH and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH position performs unexpectedly, CJ Seafood 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 Seafood will offset losses from the drop in CJ Seafood's long position.| PLAYWITH vs. MEDIANA CoLtd | PLAYWITH vs. SAMG Entertainment Co | PLAYWITH vs. Hanjin Transportation Co | PLAYWITH vs. Lotte Chilsung Beverage |
| CJ Seafood vs. Digital Power Communications | CJ Seafood vs. Lotte Data Communication | CJ Seafood vs. Korea Shipbuilding Offshore | CJ Seafood vs. LG Display 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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