Correlation Between Duksan Hi and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Duksan Hi 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 Duksan Hi and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and CJ Seafood Corp, you can compare the effects of market volatilities on Duksan Hi 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 Duksan Hi with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and CJ Seafood.
Diversification Opportunities for Duksan Hi and CJ Seafood
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Duksan and 011150 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal 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 Duksan Hi 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 Duksan Hi Metal 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 Duksan Hi i.e., Duksan Hi and CJ Seafood go up and down completely randomly.
Pair Corralation between Duksan Hi and CJ Seafood
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the CJ Seafood. In addition to that, Duksan Hi is 1.03 times more volatile than CJ Seafood Corp. It trades about 0.0 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.01 per unit of volatility. If you would invest 311,000 in CJ Seafood Corp on October 16, 2024 and sell it today you would lose (8,000) from holding CJ Seafood Corp or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. CJ Seafood Corp
Performance |
| Timeline |
| Duksan Hi Metal |
| CJ Seafood Corp |
Duksan Hi and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and CJ Seafood
The main advantage of trading using opposite Duksan Hi and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi 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.| Duksan Hi vs. Aprogen Healthcare Games | Duksan Hi vs. Nable Communications | Duksan Hi vs. Youngsin Metal Industrial | Duksan Hi vs. Digital Power Communications |
| CJ Seafood vs. CKH Food Health | CJ Seafood vs. Choil Aluminum | CJ Seafood vs. Duksan Hi Metal | CJ Seafood vs. BIT Computer 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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