Correlation Between JYP Entertainment and KPX Green
Can any of the company-specific risk be diversified away by investing in both JYP Entertainment and KPX Green 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 KPX Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JYP Entertainment and KPX Green Chemical, you can compare the effects of market volatilities on JYP Entertainment and KPX Green 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 KPX Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of JYP Entertainment and KPX Green.
Diversification Opportunities for JYP Entertainment and KPX Green
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JYP and KPX is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JYP Entertainment and KPX Green Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPX Green Chemical 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 are associated (or correlated) with KPX Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPX Green Chemical has no effect on the direction of JYP Entertainment i.e., JYP Entertainment and KPX Green go up and down completely randomly.
Pair Corralation between JYP Entertainment and KPX Green
Assuming the 90 days trading horizon JYP Entertainment is expected to generate 13.16 times less return on investment than KPX Green. But when comparing it to its historical volatility, JYP Entertainment is 1.71 times less risky than KPX Green. It trades about 0.03 of its potential returns per unit of risk. KPX Green Chemical is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 495,000 in KPX Green Chemical on September 26, 2024 and sell it today you would earn a total of 156,000 from holding KPX Green Chemical or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JYP Entertainment vs. KPX Green Chemical
Performance |
| Timeline |
| JYP Entertainment |
| KPX Green Chemical |
JYP Entertainment and KPX Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JYP Entertainment and KPX Green
The main advantage of trading using opposite JYP Entertainment and KPX Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JYP Entertainment position performs unexpectedly, KPX Green 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 KPX Green will offset losses from the drop in KPX Green's long position.| JYP Entertainment vs. YG Entertainment | JYP Entertainment vs. SM Entertainment Co | JYP Entertainment vs. Cube Entertainment |
| KPX Green vs. Koryo Credit Information | KPX Green vs. Moadata Co | KPX Green vs. PlayD Co | KPX Green vs. LG Display Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |