Correlation Between Jeju Semiconductor and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both Jeju Semiconductor and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on Jeju Semiconductor and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Semiconductor and Cuckoo Homesys.
Diversification Opportunities for Jeju Semiconductor and Cuckoo Homesys
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jeju and Cuckoo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Semiconductor Corp and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of Jeju Semiconductor i.e., Jeju Semiconductor and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between Jeju Semiconductor and Cuckoo Homesys
Assuming the 90 days trading horizon Jeju Semiconductor Corp is expected to under-perform the Cuckoo Homesys. In addition to that, Jeju Semiconductor is 1.92 times more volatile than Cuckoo Homesys Co. It trades about -0.21 of its total potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.07 per unit of volatility. If you would invest 2,325,000 in Cuckoo Homesys Co on September 12, 2024 and sell it today you would lose (367,000) from holding Cuckoo Homesys Co or give up 15.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Semiconductor Corp vs. Cuckoo Homesys Co
Performance |
| Timeline |
| Jeju Semiconductor Corp |
| Cuckoo Homesys |
Jeju Semiconductor and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Semiconductor and Cuckoo Homesys
The main advantage of trading using opposite Jeju Semiconductor and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Semiconductor position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| Jeju Semiconductor vs. Cube Entertainment | Jeju Semiconductor vs. Dreamus Company | Jeju Semiconductor vs. LG Energy Solution | Jeju Semiconductor vs. Dongwon System |
| Cuckoo Homesys vs. Solution Advanced Technology | Cuckoo Homesys vs. Busan Industrial Co | Cuckoo Homesys vs. Busan Ind | Cuckoo Homesys vs. Sam Chun Dang |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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