Correlation Between Jayjun and Samlip General
Can any of the company-specific risk be diversified away by investing in both Jayjun and Samlip General 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 Jayjun and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jayjun Co and Samlip General Foods, you can compare the effects of market volatilities on Jayjun and Samlip General 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 Jayjun with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayjun and Samlip General.
Diversification Opportunities for Jayjun and Samlip General
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jayjun and Samlip is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jayjun Co and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and Jayjun 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 Jayjun Co are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Jayjun i.e., Jayjun and Samlip General go up and down completely randomly.
Pair Corralation between Jayjun and Samlip General
Assuming the 90 days trading horizon Jayjun Co is expected to under-perform the Samlip General. In addition to that, Jayjun is 1.88 times more volatile than Samlip General Foods. It trades about -0.11 of its total potential returns per unit of risk. Samlip General Foods is currently generating about -0.14 per unit of volatility. If you would invest 5,260,000 in Samlip General Foods on September 3, 2024 and sell it today you would lose (550,000) from holding Samlip General Foods or give up 10.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jayjun Co vs. Samlip General Foods
Performance |
| Timeline |
| Jayjun |
| Samlip General Foods |
Jayjun and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jayjun and Samlip General
The main advantage of trading using opposite Jayjun and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayjun position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Jayjun vs. Samlip General Foods | Jayjun vs. Hyundai Green Food | Jayjun vs. Seohee Construction Co | Jayjun vs. Tuksu Engineering ConstructionLtd |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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