Correlation Between Jahwa Electron and Pyung Hwa
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Pyung Hwa 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 Pyung Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Pyung Hwa Industrial, you can compare the effects of market volatilities on Jahwa Electron and Pyung Hwa 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 Pyung Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Pyung Hwa.
Diversification Opportunities for Jahwa Electron and Pyung Hwa
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahwa and Pyung is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Pyung Hwa Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyung Hwa Industrial 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 Pyung Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyung Hwa Industrial has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Pyung Hwa go up and down completely randomly.
Pair Corralation between Jahwa Electron and Pyung Hwa
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the Pyung Hwa. But the stock apears to be less risky and, when comparing its historical volatility, Jahwa Electron is 1.64 times less risky than Pyung Hwa. The stock trades about -0.09 of its potential returns per unit of risk. The Pyung Hwa Industrial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 127,700 in Pyung Hwa Industrial on November 29, 2024 and sell it today you would lose (300.00) from holding Pyung Hwa Industrial or give up 0.23% 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. Pyung Hwa Industrial
Performance |
| Timeline |
| Jahwa Electron |
| Pyung Hwa Industrial |
Jahwa Electron and Pyung Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Pyung Hwa
The main advantage of trading using opposite Jahwa Electron and Pyung Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Pyung Hwa 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 Pyung Hwa will offset losses from the drop in Pyung Hwa's long position.| Jahwa Electron vs. Digital Power Communications | Jahwa Electron vs. Histeel | Jahwa Electron vs. Hyundai BNG Steel | Jahwa Electron vs. Korea Computer |
| Pyung Hwa vs. Namyang Dairy | Pyung Hwa vs. Kyeryong Construction Industrial | Pyung Hwa vs. Tuksu Engineering ConstructionLtd | Pyung Hwa vs. CKH Food Health |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |