Correlation Between Yura Tech and JC Chemical
Can any of the company-specific risk be diversified away by investing in both Yura Tech and JC Chemical 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 Yura Tech and JC Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yura Tech Co and JC Chemical Co, you can compare the effects of market volatilities on Yura Tech and JC Chemical 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 Yura Tech with a short position of JC Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and JC Chemical.
Diversification Opportunities for Yura Tech and JC Chemical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yura and 137950 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and JC Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JC Chemical and Yura Tech 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 Yura Tech Co are associated (or correlated) with JC Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JC Chemical has no effect on the direction of Yura Tech i.e., Yura Tech and JC Chemical go up and down completely randomly.
Pair Corralation between Yura Tech and JC Chemical
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 2.29 times more return on investment than JC Chemical. However, Yura Tech is 2.29 times more volatile than JC Chemical Co. It trades about 0.18 of its potential returns per unit of risk. JC Chemical Co is currently generating about 0.28 per unit of risk. If you would invest 711,355 in Yura Tech Co on October 12, 2024 and sell it today you would earn a total of 100,645 from holding Yura Tech Co or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. JC Chemical Co
Performance |
| Timeline |
| Yura Tech |
| JC Chemical |
Yura Tech and JC Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and JC Chemical
The main advantage of trading using opposite Yura Tech and JC Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, JC Chemical 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 JC Chemical will offset losses from the drop in JC Chemical's long position.| Yura Tech vs. GS Retail Co | Yura Tech vs. Samsung Electronics Co | Yura Tech vs. Shinil Electronics Co | Yura Tech vs. DAEDUCK ELECTRONICS CoLtd |
| JC Chemical vs. RFTech Co | JC Chemical vs. Yura Tech Co | JC Chemical vs. Narae Nanotech Corp | JC Chemical vs. A Tech Solution 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.
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