Correlation Between Koryo Credit and Jayjun
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Jayjun 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 Koryo Credit and Jayjun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Jayjun Co, you can compare the effects of market volatilities on Koryo Credit and Jayjun 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 Koryo Credit with a short position of Jayjun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Jayjun.
Diversification Opportunities for Koryo Credit and Jayjun
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Koryo and Jayjun is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Jayjun Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayjun and Koryo Credit 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 Koryo Credit Information are associated (or correlated) with Jayjun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayjun has no effect on the direction of Koryo Credit i.e., Koryo Credit and Jayjun go up and down completely randomly.
Pair Corralation between Koryo Credit and Jayjun
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.39 times more return on investment than Jayjun. However, Koryo Credit Information is 2.55 times less risky than Jayjun. It trades about 0.0 of its potential returns per unit of risk. Jayjun Co is currently generating about -0.06 per unit of risk. If you would invest 1,016,864 in Koryo Credit Information on September 12, 2024 and sell it today you would lose (12,864) from holding Koryo Credit Information or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Jayjun Co
Performance |
| Timeline |
| Koryo Credit Information |
| Jayjun |
Koryo Credit and Jayjun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Jayjun
The main advantage of trading using opposite Koryo Credit and Jayjun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Jayjun 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 Jayjun will offset losses from the drop in Jayjun's long position.| Koryo Credit vs. Korea New Network | Koryo Credit vs. Solution Advanced Technology | Koryo Credit vs. Busan Industrial Co | Koryo Credit vs. Busan Ind |
| Jayjun vs. Dgb Financial | Jayjun vs. CJ Seafood Corp | Jayjun vs. Koryo Credit Information | Jayjun vs. Pureun Mutual Savings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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