Correlation Between Daihan Pharmaceutical and JETEMA
Can any of the company-specific risk be diversified away by investing in both Daihan Pharmaceutical and JETEMA 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 Daihan Pharmaceutical and JETEMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daihan Pharmaceutical CoLtd and JETEMA Co, you can compare the effects of market volatilities on Daihan Pharmaceutical and JETEMA 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 Daihan Pharmaceutical with a short position of JETEMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daihan Pharmaceutical and JETEMA.
Diversification Opportunities for Daihan Pharmaceutical and JETEMA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Daihan and JETEMA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Daihan Pharmaceutical CoLtd and JETEMA Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JETEMA and Daihan Pharmaceutical 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 Daihan Pharmaceutical CoLtd are associated (or correlated) with JETEMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JETEMA has no effect on the direction of Daihan Pharmaceutical i.e., Daihan Pharmaceutical and JETEMA go up and down completely randomly.
Pair Corralation between Daihan Pharmaceutical and JETEMA
Assuming the 90 days trading horizon Daihan Pharmaceutical is expected to generate 6.67 times less return on investment than JETEMA. But when comparing it to its historical volatility, Daihan Pharmaceutical CoLtd is 3.01 times less risky than JETEMA. It trades about 0.0 of its potential returns per unit of risk. JETEMA Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,160,000 in JETEMA Co on August 28, 2024 and sell it today you would lose (228,000) from holding JETEMA Co or give up 10.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daihan Pharmaceutical CoLtd vs. JETEMA Co
Performance |
| Timeline |
| Daihan Pharmaceutical |
| JETEMA |
Daihan Pharmaceutical and JETEMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daihan Pharmaceutical and JETEMA
The main advantage of trading using opposite Daihan Pharmaceutical and JETEMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daihan Pharmaceutical position performs unexpectedly, JETEMA 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 JETEMA will offset losses from the drop in JETEMA's long position.| Daihan Pharmaceutical vs. Kolon Life Science | Daihan Pharmaceutical vs. Aminologics CoLtd | Daihan Pharmaceutical vs. Withuspharmaceutical CoLtd | Daihan Pharmaceutical vs. High Tech Pharm |
| JETEMA vs. Kolon Life Science | JETEMA vs. Aminologics CoLtd | JETEMA vs. Withuspharmaceutical CoLtd | JETEMA vs. High Tech Pharm |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |