Correlation Between Neungyule Education and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Neungyule Education 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 Neungyule Education and Jb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neungyule Education and Jb Financial, you can compare the effects of market volatilities on Neungyule Education 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 Neungyule Education with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neungyule Education and Jb Financial.
Diversification Opportunities for Neungyule Education and Jb Financial
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neungyule and 175330 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Neungyule Education and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and Neungyule Education 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 Neungyule Education 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 Neungyule Education i.e., Neungyule Education and Jb Financial go up and down completely randomly.
Pair Corralation between Neungyule Education and Jb Financial
Assuming the 90 days trading horizon Neungyule Education is expected to generate 9.63 times less return on investment than Jb Financial. In addition to that, Neungyule Education is 2.03 times more volatile than Jb Financial. It trades about 0.04 of its total potential returns per unit of risk. Jb Financial is currently generating about 0.7 per unit of volatility. If you would invest 1,610,000 in Jb Financial on November 6, 2024 and sell it today you would earn a total of 367,000 from holding Jb Financial or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neungyule Education vs. Jb Financial
Performance |
| Timeline |
| Neungyule Education |
| Jb Financial |
Neungyule Education and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neungyule Education and Jb Financial
The main advantage of trading using opposite Neungyule Education and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neungyule Education 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.| Neungyule Education vs. Dongil Metal Co | Neungyule Education vs. Ssangyong Information Communication | Neungyule Education vs. Songwon Industrial Co | Neungyule Education vs. Lotte Data Communication |
| Jb Financial vs. Miwon Chemicals Co | Jb Financial vs. Keyang Electric Machinery | Jb Financial vs. Kukdong Oil Chemicals | Jb Financial vs. Korea Air Svc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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