Correlation Between EBEST Investment and Jb Financial
Can any of the company-specific risk be diversified away by investing in both EBEST Investment 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 EBEST Investment and Jb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBEST Investment Securities and Jb Financial, you can compare the effects of market volatilities on EBEST Investment 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 EBEST Investment with a short position of Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Jb Financial.
Diversification Opportunities for EBEST Investment and Jb Financial
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EBEST and 175330 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial and EBEST Investment 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 EBEST Investment Securities 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 EBEST Investment i.e., EBEST Investment and Jb Financial go up and down completely randomly.
Pair Corralation between EBEST Investment and Jb Financial
Assuming the 90 days trading horizon EBEST Investment Securities is expected to under-perform the Jb Financial. But the stock apears to be less risky and, when comparing its historical volatility, EBEST Investment Securities is 1.01 times less risky than Jb Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Jb Financial is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 809,197 in Jb Financial on September 2, 2024 and sell it today you would earn a total of 1,158,803 from holding Jb Financial or generate 143.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBEST Investment Securities vs. Jb Financial
Performance |
| Timeline |
| EBEST Investment Sec |
| Jb Financial |
EBEST Investment and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBEST Investment and Jb Financial
The main advantage of trading using opposite EBEST Investment and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment 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.| EBEST Investment vs. RFTech Co | EBEST Investment vs. Coloray International Investment | EBEST Investment vs. DSC Investment | EBEST Investment vs. Hanjin Transportation Co |
| Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. KB Financial Group | Jb Financial vs. Shinhan Financial Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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