Correlation Between Value Added and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Value Added 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 Value Added and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Added Technology and CJ Seafood Corp, you can compare the effects of market volatilities on Value Added 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 Value Added with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Added and CJ Seafood.
Diversification Opportunities for Value Added and CJ Seafood
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Value and 011150 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Value Added Technology 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 Value Added 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 Value Added Technology 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 Value Added i.e., Value Added and CJ Seafood go up and down completely randomly.
Pair Corralation between Value Added and CJ Seafood
Assuming the 90 days trading horizon Value Added Technology is expected to under-perform the CJ Seafood. But the stock apears to be less risky and, when comparing its historical volatility, Value Added Technology is 2.38 times less risky than CJ Seafood. The stock trades about -0.12 of its potential returns per unit of risk. The CJ Seafood Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 296,500 in CJ Seafood Corp on September 12, 2024 and sell it today you would lose (5,000) from holding CJ Seafood Corp or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Value Added Technology vs. CJ Seafood Corp
Performance |
| Timeline |
| Value Added Technology |
| CJ Seafood Corp |
Value Added and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Value Added and CJ Seafood
The main advantage of trading using opposite Value Added and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Added 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.| Value Added vs. DIO Corporation | Value Added vs. Medy Tox | Value Added vs. InBody CoLtd | Value Added vs. Soulbrain Holdings Co |
| CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. SK Hynix | CJ Seafood vs. POSCO Holdings |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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