Correlation Between AeroSpace Technology and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both AeroSpace Technology 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 AeroSpace Technology and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AeroSpace Technology of and CJ Seafood Corp, you can compare the effects of market volatilities on AeroSpace Technology 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 AeroSpace Technology with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of AeroSpace Technology and CJ Seafood.
Diversification Opportunities for AeroSpace Technology and CJ Seafood
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AeroSpace and 011155 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding AeroSpace Technology of 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 AeroSpace Technology 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 AeroSpace Technology of 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 AeroSpace Technology i.e., AeroSpace Technology and CJ Seafood go up and down completely randomly.
Pair Corralation between AeroSpace Technology and CJ Seafood
Assuming the 90 days trading horizon AeroSpace Technology of is expected to under-perform the CJ Seafood. But the stock apears to be less risky and, when comparing its historical volatility, AeroSpace Technology of is 2.88 times less risky than CJ Seafood. The stock trades about -0.13 of its potential returns per unit of risk. The CJ Seafood Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,784,000 in CJ Seafood Corp on September 13, 2024 and sell it today you would earn a total of 26,000 from holding CJ Seafood Corp or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AeroSpace Technology of vs. CJ Seafood Corp
Performance |
| Timeline |
| AeroSpace Technology |
| CJ Seafood Corp |
AeroSpace Technology and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AeroSpace Technology and CJ Seafood
The main advantage of trading using opposite AeroSpace Technology and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AeroSpace Technology 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.| AeroSpace Technology vs. Korea New Network | AeroSpace Technology vs. Solution Advanced Technology | AeroSpace Technology vs. Busan Industrial Co | AeroSpace Technology vs. Busan Ind |
| CJ Seafood vs. Guyoung Technology Co | CJ Seafood vs. Polaris Office Corp | CJ Seafood vs. AeroSpace Technology of | CJ Seafood vs. Eugene Technology CoLtd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |