Correlation Between Eugene Technology and Jeju Semiconductor
Can any of the company-specific risk be diversified away by investing in both Eugene Technology and Jeju Semiconductor 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 Eugene Technology and Jeju Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Technology CoLtd and Jeju Semiconductor Corp, you can compare the effects of market volatilities on Eugene Technology and Jeju Semiconductor 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 Eugene Technology with a short position of Jeju Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and Jeju Semiconductor.
Diversification Opportunities for Eugene Technology and Jeju Semiconductor
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eugene and Jeju is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and Jeju Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Semiconductor Corp and Eugene 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 Eugene Technology CoLtd are associated (or correlated) with Jeju Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Semiconductor Corp has no effect on the direction of Eugene Technology i.e., Eugene Technology and Jeju Semiconductor go up and down completely randomly.
Pair Corralation between Eugene Technology and Jeju Semiconductor
Assuming the 90 days trading horizon Eugene Technology is expected to generate 1.19 times less return on investment than Jeju Semiconductor. In addition to that, Eugene Technology is 1.02 times more volatile than Jeju Semiconductor Corp. It trades about 0.16 of its total potential returns per unit of risk. Jeju Semiconductor Corp is currently generating about 0.19 per unit of volatility. If you would invest 877,000 in Jeju Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 113,000 from holding Jeju Semiconductor Corp or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. Jeju Semiconductor Corp
Performance |
| Timeline |
| Eugene Technology CoLtd |
| Jeju Semiconductor Corp |
Eugene Technology and Jeju Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and Jeju Semiconductor
The main advantage of trading using opposite Eugene Technology and Jeju Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology position performs unexpectedly, Jeju Semiconductor 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 Jeju Semiconductor will offset losses from the drop in Jeju Semiconductor's long position.| Eugene Technology vs. Pyung Hwa Industrial | Eugene Technology vs. Leaders Technology Investment | Eugene Technology vs. Drb Industrial | Eugene Technology vs. Atinum Investment Co |
| Jeju Semiconductor vs. ENF Technology Co | Jeju Semiconductor vs. Hwangkum Steel Technology | Jeju Semiconductor vs. Eugene Technology CoLtd | Jeju Semiconductor vs. Korea Air Svc |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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