Correlation Between Jahwa Electron and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Korea Shipbuilding 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 Korea Shipbuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Jahwa Electron and Korea Shipbuilding 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 Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Korea Shipbuilding.
Diversification Opportunities for Jahwa Electron and Korea Shipbuilding
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jahwa and Korea is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding 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 Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Jahwa Electron and Korea Shipbuilding
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the Korea Shipbuilding. In addition to that, Jahwa Electron is 1.28 times more volatile than Korea Shipbuilding Offshore. It trades about -0.31 of its total potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.22 per unit of volatility. If you would invest 18,070,000 in Korea Shipbuilding Offshore on September 3, 2024 and sell it today you would earn a total of 2,380,000 from holding Korea Shipbuilding Offshore or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Jahwa Electron |
| Korea Shipbuilding |
Jahwa Electron and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Korea Shipbuilding
The main advantage of trading using opposite Jahwa Electron and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| Jahwa Electron vs. Nam Hwa Construction | Jahwa Electron vs. Woorim Machinery Co | Jahwa Electron vs. GS Engineering Construction | Jahwa Electron vs. AeroSpace Technology of |
| Korea Shipbuilding vs. LG Display | Korea Shipbuilding vs. Hyundai Motor | Korea Shipbuilding vs. Hyundai Motor Co | Korea Shipbuilding vs. Hyundai Motor 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |