Correlation Between Jahwa Electron and FLITTO
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and FLITTO 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 FLITTO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and FLITTO Inc, you can compare the effects of market volatilities on Jahwa Electron and FLITTO 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 FLITTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and FLITTO.
Diversification Opportunities for Jahwa Electron and FLITTO
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahwa and FLITTO is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and FLITTO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLITTO Inc 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 FLITTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLITTO Inc has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and FLITTO go up and down completely randomly.
Pair Corralation between Jahwa Electron and FLITTO
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the FLITTO. But the stock apears to be less risky and, when comparing its historical volatility, Jahwa Electron is 1.69 times less risky than FLITTO. The stock trades about -0.19 of its potential returns per unit of risk. The FLITTO Inc is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3,025,000 in FLITTO Inc on August 31, 2024 and sell it today you would lose (1,085,000) from holding FLITTO Inc or give up 35.87% 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. FLITTO Inc
Performance |
| Timeline |
| Jahwa Electron |
| FLITTO Inc |
Jahwa Electron and FLITTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electron and FLITTO
The main advantage of trading using opposite Jahwa Electron and FLITTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, FLITTO 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 FLITTO will offset losses from the drop in FLITTO's long position.| Jahwa Electron vs. Digital Power Communications | Jahwa Electron vs. BIT Computer Co | Jahwa Electron vs. Shinsegae Information Communication | Jahwa Electron vs. Inzi Display CoLtd |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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