Correlation Between JUSUNG ENGINEERING and Nepes
Can any of the company-specific risk be diversified away by investing in both JUSUNG ENGINEERING and Nepes 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 JUSUNG ENGINEERING and Nepes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JUSUNG ENGINEERING Co and Nepes, you can compare the effects of market volatilities on JUSUNG ENGINEERING and Nepes 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 JUSUNG ENGINEERING with a short position of Nepes. Check out your portfolio center. Please also check ongoing floating volatility patterns of JUSUNG ENGINEERING and Nepes.
Diversification Opportunities for JUSUNG ENGINEERING and Nepes
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between JUSUNG and Nepes is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding JUSUNG ENGINEERING Co and Nepes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nepes and JUSUNG ENGINEERING 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 JUSUNG ENGINEERING Co are associated (or correlated) with Nepes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nepes has no effect on the direction of JUSUNG ENGINEERING i.e., JUSUNG ENGINEERING and Nepes go up and down completely randomly.
Pair Corralation between JUSUNG ENGINEERING and Nepes
Assuming the 90 days trading horizon JUSUNG ENGINEERING Co is expected to generate 1.14 times more return on investment than Nepes. However, JUSUNG ENGINEERING is 1.14 times more volatile than Nepes. It trades about 0.03 of its potential returns per unit of risk. Nepes is currently generating about -0.09 per unit of risk. If you would invest 2,505,035 in JUSUNG ENGINEERING Co on August 25, 2024 and sell it today you would earn a total of 414,965 from holding JUSUNG ENGINEERING Co or generate 16.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JUSUNG ENGINEERING Co vs. Nepes
Performance |
| Timeline |
| JUSUNG ENGINEERING |
| Nepes |
JUSUNG ENGINEERING and Nepes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JUSUNG ENGINEERING and Nepes
The main advantage of trading using opposite JUSUNG ENGINEERING and Nepes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JUSUNG ENGINEERING position performs unexpectedly, Nepes 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 Nepes will offset losses from the drop in Nepes' long position.| JUSUNG ENGINEERING vs. Korea Real Estate | JUSUNG ENGINEERING vs. Korea Ratings Co | JUSUNG ENGINEERING vs. IQuest Co | JUSUNG ENGINEERING vs. Wonbang Tech Co |
| Nepes vs. Dongjin Semichem Co | Nepes vs. SFA Semicon Co | Nepes vs. Seoul Semiconductor Co | Nepes vs. EO Technics 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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