Correlation Between JYP Entertainment and JNK Heaters
Can any of the company-specific risk be diversified away by investing in both JYP Entertainment and JNK Heaters 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 JYP Entertainment and JNK Heaters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JYP Entertainment Corp and JNK Heaters Co, you can compare the effects of market volatilities on JYP Entertainment and JNK Heaters 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 JYP Entertainment with a short position of JNK Heaters. Check out your portfolio center. Please also check ongoing floating volatility patterns of JYP Entertainment and JNK Heaters.
Diversification Opportunities for JYP Entertainment and JNK Heaters
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JYP and JNK is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JYP Entertainment Corp and JNK Heaters Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNK Heaters and JYP Entertainment 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 JYP Entertainment Corp are associated (or correlated) with JNK Heaters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNK Heaters has no effect on the direction of JYP Entertainment i.e., JYP Entertainment and JNK Heaters go up and down completely randomly.
Pair Corralation between JYP Entertainment and JNK Heaters
Assuming the 90 days trading horizon JYP Entertainment is expected to generate 1.52 times less return on investment than JNK Heaters. In addition to that, JYP Entertainment is 1.31 times more volatile than JNK Heaters Co. It trades about 0.1 of its total potential returns per unit of risk. JNK Heaters Co is currently generating about 0.21 per unit of volatility. If you would invest 331,500 in JNK Heaters Co on October 20, 2024 and sell it today you would earn a total of 32,000 from holding JNK Heaters Co or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JYP Entertainment Corp vs. JNK Heaters Co
Performance |
| Timeline |
| JYP Entertainment Corp |
| JNK Heaters |
JYP Entertainment and JNK Heaters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JYP Entertainment and JNK Heaters
The main advantage of trading using opposite JYP Entertainment and JNK Heaters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JYP Entertainment position performs unexpectedly, JNK Heaters 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 JNK Heaters will offset losses from the drop in JNK Heaters' long position.| JYP Entertainment vs. Shinsegae Food | JYP Entertainment vs. Haitai Confectionery Foods | JYP Entertainment vs. FoodNamoo | JYP Entertainment vs. Youl Chon Chemical |
| JNK Heaters vs. Daou Data Corp | JNK Heaters vs. Busan Industrial Co | JNK Heaters vs. Busan Ind | JNK Heaters vs. Mirae Asset Daewoo |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |