Correlation Between Wonbang Tech and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech 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 Wonbang Tech and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and CJ Seafood Corp, you can compare the effects of market volatilities on Wonbang Tech 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 Wonbang Tech with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and CJ Seafood.
Diversification Opportunities for Wonbang Tech and CJ Seafood
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wonbang and 011150 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co 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 Wonbang 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 Wonbang Tech Co 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 Wonbang Tech i.e., Wonbang Tech and CJ Seafood go up and down completely randomly.
Pair Corralation between Wonbang Tech and CJ Seafood
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 1.07 times more return on investment than CJ Seafood. However, Wonbang Tech is 1.07 times more volatile than CJ Seafood Corp. It trades about 0.26 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.21 per unit of risk. If you would invest 1,325,000 in Wonbang Tech Co on November 27, 2024 and sell it today you would earn a total of 126,000 from holding Wonbang Tech Co or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. CJ Seafood Corp
Performance |
| Timeline |
| Wonbang Tech |
| CJ Seafood Corp |
Wonbang Tech and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and CJ Seafood
The main advantage of trading using opposite Wonbang Tech and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech 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.| Wonbang Tech vs. Display Tech Co | Wonbang Tech vs. Inzi Display CoLtd | Wonbang Tech vs. Sangsin Energy Display | Wonbang Tech vs. DoubleU Games Co |
| CJ Seafood vs. LG Household Healthcare | CJ Seafood vs. Digital Power Communications | CJ Seafood vs. Infinitt Healthcare Co | CJ Seafood vs. Innowireless 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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