Correlation Between Jahwa Electron and Eugene Investment
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Eugene Investment 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 Jahwa Electron and Eugene Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Eugene Investment Securities, you can compare the effects of market volatilities on Jahwa Electron and Eugene Investment 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 Jahwa Electron with a short position of Eugene Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Eugene Investment.
Diversification Opportunities for Jahwa Electron and Eugene Investment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jahwa and Eugene is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Eugene Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Investment and Jahwa Electron 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 Jahwa Electron are associated (or correlated) with Eugene Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Investment has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Eugene Investment go up and down completely randomly.
Pair Corralation between Jahwa Electron and Eugene Investment
Assuming the 90 days trading horizon Jahwa Electron is expected to generate 1.04 times more return on investment than Eugene Investment. However, Jahwa Electron is 1.04 times more volatile than Eugene Investment Securities. It trades about -0.17 of its potential returns per unit of risk. Eugene Investment Securities is currently generating about -0.36 per unit of risk. If you would invest 1,557,000 in Jahwa Electron on August 29, 2024 and sell it today you would lose (222,000) from holding Jahwa Electron or give up 14.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. Eugene Investment Securities
Performance |
| Timeline |
| Jahwa Electron |
| Eugene Investment |
Jahwa Electron and Eugene Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Eugene Investment
The main advantage of trading using opposite Jahwa Electron and Eugene Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Eugene Investment 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 Eugene Investment will offset losses from the drop in Eugene Investment's long position.| Jahwa Electron vs. Korea Real Estate | Jahwa Electron vs. Korea Ratings Co | Jahwa Electron vs. IQuest Co | Jahwa Electron vs. Wonbang Tech Co |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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