Correlation Between Inzi Display and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Inzi Display and CJ Seafood 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 Inzi Display and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and CJ Seafood Corp, you can compare the effects of market volatilities on Inzi Display and CJ Seafood 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 Inzi Display with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and CJ Seafood.
Diversification Opportunities for Inzi Display and CJ Seafood
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inzi and 011155 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of Inzi Display i.e., Inzi Display and CJ Seafood go up and down completely randomly.
Pair Corralation between Inzi Display and CJ Seafood
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the CJ Seafood. In addition to that, Inzi Display is 1.04 times more volatile than CJ Seafood Corp. It trades about -0.33 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about -0.34 per unit of volatility. If you would invest 1,785,000 in CJ Seafood Corp on September 4, 2024 and sell it today you would lose (165,000) from holding CJ Seafood Corp or give up 9.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. CJ Seafood Corp
Performance |
| Timeline |
| Inzi Display CoLtd |
| CJ Seafood Corp |
Inzi Display and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and CJ Seafood
The main advantage of trading using opposite Inzi Display and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, CJ Seafood 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 CJ Seafood will offset losses from the drop in CJ Seafood's long position.| Inzi Display vs. ChipsMedia | Inzi Display vs. DC Media Co | Inzi Display vs. Visang Education | Inzi Display vs. Nasmedia Co |
| CJ Seafood vs. Lotte Chilsung Beverage | CJ Seafood vs. Innowireless Co | CJ Seafood vs. KEPCO Engineering Construction | CJ Seafood vs. Bohae Brewery |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |