Correlation Between Jahwa Electron and IQuest
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and IQuest 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 IQuest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and IQuest Co, you can compare the effects of market volatilities on Jahwa Electron and IQuest 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 IQuest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and IQuest.
Diversification Opportunities for Jahwa Electron and IQuest
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jahwa and IQuest is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and IQuest Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQuest 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 IQuest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQuest has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and IQuest go up and down completely randomly.
Pair Corralation between Jahwa Electron and IQuest
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the IQuest. In addition to that, Jahwa Electron is 1.32 times more volatile than IQuest Co. It trades about -0.02 of its total potential returns per unit of risk. IQuest Co is currently generating about 0.1 per unit of volatility. If you would invest 212,959 in IQuest Co on November 1, 2024 and sell it today you would earn a total of 32,541 from holding IQuest Co or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. IQuest Co
Performance |
| Timeline |
| Jahwa Electron |
| IQuest |
Jahwa Electron and IQuest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and IQuest
The main advantage of trading using opposite Jahwa Electron and IQuest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, IQuest 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 IQuest will offset losses from the drop in IQuest's 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 |
| IQuest vs. Samsung Electronics Co | IQuest vs. Samsung Electronics Co | IQuest vs. LG Energy Solution | IQuest vs. SK Hynix |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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