Correlation Between Mobile Appliance and JC Chemical
Can any of the company-specific risk be diversified away by investing in both Mobile Appliance and JC Chemical 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 Mobile Appliance and JC Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Appliance and JC Chemical Co, you can compare the effects of market volatilities on Mobile Appliance and JC Chemical 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 Mobile Appliance with a short position of JC Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Appliance and JC Chemical.
Diversification Opportunities for Mobile Appliance and JC Chemical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mobile and 137950 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Appliance and JC Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JC Chemical and Mobile Appliance 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 Mobile Appliance are associated (or correlated) with JC Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JC Chemical has no effect on the direction of Mobile Appliance i.e., Mobile Appliance and JC Chemical go up and down completely randomly.
Pair Corralation between Mobile Appliance and JC Chemical
Assuming the 90 days trading horizon Mobile Appliance is expected to generate 1.41 times more return on investment than JC Chemical. However, Mobile Appliance is 1.41 times more volatile than JC Chemical Co. It trades about -0.01 of its potential returns per unit of risk. JC Chemical Co is currently generating about -0.08 per unit of risk. If you would invest 278,500 in Mobile Appliance on October 14, 2024 and sell it today you would lose (54,500) from holding Mobile Appliance or give up 19.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Appliance vs. JC Chemical Co
Performance |
| Timeline |
| Mobile Appliance |
| JC Chemical |
Mobile Appliance and JC Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Appliance and JC Chemical
The main advantage of trading using opposite Mobile Appliance and JC Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Appliance position performs unexpectedly, JC Chemical 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 JC Chemical will offset losses from the drop in JC Chemical's long position.| Mobile Appliance vs. DONGKUK TED METAL | Mobile Appliance vs. Hankuk Steel Wire | Mobile Appliance vs. Heungkuk Metaltech CoLtd | Mobile Appliance vs. Kukil Metal Co |
| JC Chemical vs. Seoul Electronics Telecom | JC Chemical vs. Hanwha Chemical Corp | JC Chemical vs. KPX Green Chemical | JC Chemical vs. UJU Electronics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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