Correlation Between KT Submarine and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both KT Submarine 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 KT Submarine and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Submarine Co and CJ Seafood Corp, you can compare the effects of market volatilities on KT Submarine 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 KT Submarine with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and CJ Seafood.
Diversification Opportunities for KT Submarine and CJ Seafood
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 060370 and 011150 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine 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 KT Submarine 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 KT Submarine 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 KT Submarine i.e., KT Submarine and CJ Seafood go up and down completely randomly.
Pair Corralation between KT Submarine and CJ Seafood
Assuming the 90 days trading horizon KT Submarine Co is expected to under-perform the CJ Seafood. In addition to that, KT Submarine is 1.91 times more volatile than CJ Seafood Corp. It trades about -0.09 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about -0.15 per unit of volatility. If you would invest 352,500 in CJ Seafood Corp on September 2, 2024 and sell it today you would lose (62,000) from holding CJ Seafood Corp or give up 17.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Submarine Co vs. CJ Seafood Corp
Performance |
| Timeline |
| KT Submarine |
| CJ Seafood Corp |
KT Submarine and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and CJ Seafood
The main advantage of trading using opposite KT Submarine and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine 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.| KT Submarine vs. Home Center Holdings | KT Submarine vs. Jb Financial | KT Submarine vs. Jeju Bank | KT Submarine vs. Settlebank |
| CJ Seafood vs. AptaBio Therapeutics | CJ Seafood vs. Daewoo SBI SPAC | CJ Seafood vs. Dream Security co | CJ Seafood vs. Microfriend |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |