Correlation Between Jahwa Electron and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Samyang Foods 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 Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Samyang Foods Co, you can compare the effects of market volatilities on Jahwa Electron and Samyang Foods 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 Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Samyang Foods.
Diversification Opportunities for Jahwa Electron and Samyang Foods
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jahwa and Samyang is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang Foods 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 Samyang Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyang Foods has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Samyang Foods go up and down completely randomly.
Pair Corralation between Jahwa Electron and Samyang Foods
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the Samyang Foods. In addition to that, Jahwa Electron is 1.02 times more volatile than Samyang Foods Co. It trades about -0.17 of its total potential returns per unit of risk. Samyang Foods Co is currently generating about 0.01 per unit of volatility. If you would invest 52,200,000 in Samyang Foods Co on August 29, 2024 and sell it today you would lose (300,000) from holding Samyang Foods Co or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. Samyang Foods Co
Performance |
| Timeline |
| Jahwa Electron |
| Samyang Foods |
Jahwa Electron and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Samyang Foods
The main advantage of trading using opposite Jahwa Electron and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Samyang Foods 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 Samyang Foods will offset losses from the drop in Samyang Foods' 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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