Correlation Between Jahwa Electron and Asiana Airlines
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Asiana Airlines 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 Asiana Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Asiana Airlines, you can compare the effects of market volatilities on Jahwa Electron and Asiana Airlines 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 Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Asiana Airlines.
Diversification Opportunities for Jahwa Electron and Asiana Airlines
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jahwa and Asiana is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines 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 Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Asiana Airlines go up and down completely randomly.
Pair Corralation between Jahwa Electron and Asiana Airlines
Assuming the 90 days trading horizon Jahwa Electron is expected to generate 5.3 times more return on investment than Asiana Airlines. However, Jahwa Electron is 5.3 times more volatile than Asiana Airlines. It trades about 0.29 of its potential returns per unit of risk. Asiana Airlines is currently generating about 0.09 per unit of risk. If you would invest 1,172,000 in Jahwa Electron on November 1, 2024 and sell it today you would earn a total of 273,000 from holding Jahwa Electron or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. Asiana Airlines
Performance |
| Timeline |
| Jahwa Electron |
| Asiana Airlines |
Jahwa Electron and Asiana Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Asiana Airlines
The main advantage of trading using opposite Jahwa Electron and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' long position.| Jahwa Electron vs. Kbi Metal Co | Jahwa Electron vs. Korea Investment Holdings | Jahwa Electron vs. Shinhan Inverse Copper | Jahwa Electron vs. Woori Technology Investment |
| Asiana Airlines vs. YG Entertainment | Asiana Airlines vs. MEDIANA CoLtd | Asiana Airlines vs. Stic Investments | Asiana Airlines vs. Digital Multimedia Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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