Correlation Between Jeju Semiconductor and PH Tech
Can any of the company-specific risk be diversified away by investing in both Jeju Semiconductor and PH Tech 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 Jeju Semiconductor and PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Semiconductor Corp and PH Tech Co, you can compare the effects of market volatilities on Jeju Semiconductor and PH Tech 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 Jeju Semiconductor with a short position of PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Semiconductor and PH Tech.
Diversification Opportunities for Jeju Semiconductor and PH Tech
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jeju and 239890 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Semiconductor Corp and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech and Jeju Semiconductor 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 Jeju Semiconductor Corp are associated (or correlated) with PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Jeju Semiconductor i.e., Jeju Semiconductor and PH Tech go up and down completely randomly.
Pair Corralation between Jeju Semiconductor and PH Tech
Assuming the 90 days trading horizon Jeju Semiconductor is expected to generate 1.05 times less return on investment than PH Tech. In addition to that, Jeju Semiconductor is 1.28 times more volatile than PH Tech Co. It trades about 0.35 of its total potential returns per unit of risk. PH Tech Co is currently generating about 0.47 per unit of volatility. If you would invest 668,000 in PH Tech Co on October 11, 2024 and sell it today you would earn a total of 193,000 from holding PH Tech Co or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Semiconductor Corp vs. PH Tech Co
Performance |
| Timeline |
| Jeju Semiconductor Corp |
| PH Tech |
Jeju Semiconductor and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Semiconductor and PH Tech
The main advantage of trading using opposite Jeju Semiconductor and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Semiconductor position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Jeju Semiconductor vs. Ecoplastic | Jeju Semiconductor vs. Daewon Chemical Co | Jeju Semiconductor vs. Youngchang Chemical Co | Jeju Semiconductor vs. Top Material Co |
| PH Tech vs. Incar Financial Service | PH Tech vs. Korean Reinsurance Co | PH Tech vs. Industrial Bank | PH Tech vs. Lotte Non Life Insurance |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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