Correlation Between Yura Tech and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Jb Financial 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 Jb Financial 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 Jb Financial, you can compare the effects of market volatilities on Yura Tech and Jb Financial 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 Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Jb Financial.
Diversification Opportunities for Yura Tech and Jb Financial
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yura and 175330 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial 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 Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of Yura Tech i.e., Yura Tech and Jb Financial go up and down completely randomly.
Pair Corralation between Yura Tech and Jb Financial
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.91 times more return on investment than Jb Financial. However, Yura Tech Co is 1.1 times less risky than Jb Financial. It trades about -0.08 of its potential returns per unit of risk. Jb Financial is currently generating about -0.24 per unit of risk. If you would invest 837,000 in Yura Tech Co on November 28, 2024 and sell it today you would lose (20,000) from holding Yura Tech Co or give up 2.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. Jb Financial
Performance |
| Timeline |
| Yura Tech |
| Jb Financial |
Yura Tech and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Jb Financial
The main advantage of trading using opposite Yura Tech and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| Yura Tech vs. FNSTech Co | Yura Tech vs. Samyang Foods Co | Yura Tech vs. ADTechnology CoLtd | Yura Tech vs. Orbitech Co |
| Jb Financial vs. Hannong Chemicals | Jb Financial vs. Hanil Chemical Ind | Jb Financial vs. Hanyang Digitech Co | Jb Financial vs. Amogreentech 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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |