Correlation Between Jahwa Electron and Wonbang Tech
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Wonbang Tech 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 Wonbang Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Wonbang Tech Co, you can compare the effects of market volatilities on Jahwa Electron and Wonbang Tech 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 Wonbang Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Wonbang Tech.
Diversification Opportunities for Jahwa Electron and Wonbang Tech
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahwa and Wonbang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Wonbang Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonbang Tech 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 Wonbang Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonbang Tech has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Wonbang Tech go up and down completely randomly.
Pair Corralation between Jahwa Electron and Wonbang Tech
Assuming the 90 days trading horizon Jahwa Electron is expected to generate 1.59 times more return on investment than Wonbang Tech. However, Jahwa Electron is 1.59 times more volatile than Wonbang Tech Co. It trades about 0.35 of its potential returns per unit of risk. Wonbang Tech Co is currently generating about 0.13 per unit of risk. If you would invest 1,172,000 in Jahwa Electron on November 3, 2024 and sell it today you would earn a total of 373,000 from holding Jahwa Electron or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. Wonbang Tech Co
Performance |
| Timeline |
| Jahwa Electron |
| Wonbang Tech |
Jahwa Electron and Wonbang Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Wonbang Tech
The main advantage of trading using opposite Jahwa Electron and Wonbang Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Wonbang Tech 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 Wonbang Tech will offset losses from the drop in Wonbang Tech's long position.| Jahwa Electron vs. NICE Information Service | Jahwa Electron vs. Display Tech Co | Jahwa Electron vs. Lotte Rental Co | Jahwa Electron vs. SK Chemicals Co |
| Wonbang Tech vs. Seohee Construction Co | Wonbang Tech vs. MediaZen | Wonbang Tech vs. Tuksu Engineering ConstructionLtd | Wonbang Tech vs. SEOJEON ELECTRIC MACHINERY |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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