Correlation Between Jahwa Electron and DataSolution
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and DataSolution 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 DataSolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and DataSolution, you can compare the effects of market volatilities on Jahwa Electron and DataSolution 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 DataSolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and DataSolution.
Diversification Opportunities for Jahwa Electron and DataSolution
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jahwa and DataSolution is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and DataSolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DataSolution 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 DataSolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DataSolution has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and DataSolution go up and down completely randomly.
Pair Corralation between Jahwa Electron and DataSolution
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the DataSolution. But the stock apears to be less risky and, when comparing its historical volatility, Jahwa Electron is 1.39 times less risky than DataSolution. The stock trades about -0.09 of its potential returns per unit of risk. The DataSolution is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 510,000 in DataSolution on September 2, 2024 and sell it today you would lose (19,500) from holding DataSolution or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electron vs. DataSolution
Performance |
| Timeline |
| Jahwa Electron |
| DataSolution |
Jahwa Electron and DataSolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and DataSolution
The main advantage of trading using opposite Jahwa Electron and DataSolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, DataSolution 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 DataSolution will offset losses from the drop in DataSolution's long position.| Jahwa Electron vs. Handok Clean Tech | Jahwa Electron vs. DSC Investment | Jahwa Electron vs. Golden Bridge Investment | Jahwa Electron vs. SV Investment |
| DataSolution vs. Samsung Electronics Co | DataSolution vs. Samsung Electronics Co | DataSolution vs. LG Energy Solution | DataSolution 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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