Correlation Between Shinsegae Food and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food 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 Shinsegae Food and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Food and CJ Seafood Corp, you can compare the effects of market volatilities on Shinsegae Food 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 Shinsegae Food with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and CJ Seafood.
Diversification Opportunities for Shinsegae Food and CJ Seafood
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinsegae and 011150 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food i.e., Shinsegae Food and CJ Seafood go up and down completely randomly.
Pair Corralation between Shinsegae Food and CJ Seafood
Assuming the 90 days trading horizon Shinsegae Food is expected to under-perform the CJ Seafood. In addition to that, Shinsegae Food is 1.8 times more volatile than CJ Seafood Corp. It trades about -0.26 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.16 per unit of volatility. If you would invest 283,000 in CJ Seafood Corp on October 28, 2024 and sell it today you would earn a total of 14,500 from holding CJ Seafood Corp or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. CJ Seafood Corp
Performance |
| Timeline |
| Shinsegae Food |
| CJ Seafood Corp |
Shinsegae Food and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and CJ Seafood
The main advantage of trading using opposite Shinsegae Food and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food 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.| Shinsegae Food vs. Woori Technology Investment | Shinsegae Food vs. Samyung Trading Co | Shinsegae Food vs. Coloray International Investment | Shinsegae Food vs. DB Financial Investment |
| CJ Seafood vs. BIT Computer Co | CJ Seafood vs. Seers Technology | CJ Seafood vs. Dong A Steel Technology | CJ Seafood vs. Daesung Hi Tech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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