Correlation Between Jahwa Electron and Daesung Industrial
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Daesung Industrial 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 Daesung Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Daesung Industrial Co, you can compare the effects of market volatilities on Jahwa Electron and Daesung Industrial 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 Daesung Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Daesung Industrial.
Diversification Opportunities for Jahwa Electron and Daesung Industrial
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahwa and Daesung is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Daesung Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung 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 Daesung Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Industrial has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Daesung Industrial go up and down completely randomly.
Pair Corralation between Jahwa Electron and Daesung Industrial
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the Daesung Industrial. In addition to that, Jahwa Electron is 1.15 times more volatile than Daesung Industrial Co. It trades about -0.04 of its total potential returns per unit of risk. Daesung Industrial Co is currently generating about -0.01 per unit of volatility. If you would invest 417,000 in Daesung Industrial Co on October 12, 2024 and sell it today you would lose (88,000) from holding Daesung Industrial Co or give up 21.1% 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. Daesung Industrial Co
Performance |
| Timeline |
| Jahwa Electron |
| Daesung Industrial |
Jahwa Electron and Daesung Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and Daesung Industrial
The main advantage of trading using opposite Jahwa Electron and Daesung Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Daesung Industrial 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 Daesung Industrial will offset losses from the drop in Daesung Industrial's long position.| Jahwa Electron vs. KMH Hitech Co | Jahwa Electron vs. GemVaxKAEL CoLtd | Jahwa Electron vs. Bosung Power Technology | Jahwa Electron vs. Busan Industrial Co |
| Daesung Industrial vs. AptaBio Therapeutics | Daesung Industrial vs. Daewoo SBI SPAC | Daesung Industrial vs. Dream Security co | Daesung Industrial vs. Microfriend |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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