Correlation Between Jahwa Electron and Korea Real
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Korea Real 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 Real 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 Real Estate, you can compare the effects of market volatilities on Jahwa Electron and Korea Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Korea Real.
Diversification Opportunities for Jahwa Electron and Korea Real
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahwa and Korea is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Korea Real go up and down completely randomly.
Pair Corralation between Jahwa Electron and Korea Real
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the Korea Real. In addition to that, Jahwa Electron is 5.43 times more volatile than Korea Real Estate. It trades about -0.28 of its total potential returns per unit of risk. Korea Real Estate is currently generating about -0.1 per unit of volatility. If you would invest 104,100 in Korea Real Estate on August 31, 2024 and sell it today you would lose (1,700) from holding Korea Real Estate or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. Korea Real Estate
Performance |
| Timeline |
| Jahwa Electron |
| Korea Real Estate |
Jahwa Electron and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Korea Real
The main advantage of trading using opposite Jahwa Electron and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Korea Real 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 Real will offset losses from the drop in Korea Real's long position.| Jahwa Electron vs. Digital Power Communications | Jahwa Electron vs. BIT Computer Co | Jahwa Electron vs. Shinsegae Information Communication | Jahwa Electron vs. Inzi Display CoLtd |
| Korea Real vs. KT Submarine Telecom | Korea Real vs. Jb Financial | Korea Real vs. Samsung Life Insurance | Korea Real vs. SK Telecom 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |