Correlation Between Jeju Air and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Jeju Air and CJ Seafood 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 Air and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Air Co and CJ Seafood Corp, you can compare the effects of market volatilities on Jeju Air and CJ Seafood 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 Air with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Air and CJ Seafood.
Diversification Opportunities for Jeju Air and CJ Seafood
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeju and 011150 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Air Co and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp and Jeju Air 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 Air Co are associated (or correlated) with CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of Jeju Air i.e., Jeju Air and CJ Seafood go up and down completely randomly.
Pair Corralation between Jeju Air and CJ Seafood
Assuming the 90 days trading horizon Jeju Air Co is expected to under-perform the CJ Seafood. In addition to that, Jeju Air is 1.16 times more volatile than CJ Seafood Corp. It trades about 0.0 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.09 per unit of volatility. If you would invest 279,000 in CJ Seafood Corp on September 14, 2024 and sell it today you would earn a total of 11,000 from holding CJ Seafood Corp or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Air Co vs. CJ Seafood Corp
Performance |
| Timeline |
| Jeju Air |
| CJ Seafood Corp |
Jeju Air and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Air and CJ Seafood
The main advantage of trading using opposite Jeju Air and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Air position performs unexpectedly, CJ Seafood 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 CJ Seafood will offset losses from the drop in CJ Seafood's long position.| Jeju Air vs. Korea New Network | Jeju Air vs. Solution Advanced Technology | Jeju Air vs. Busan Industrial Co | Jeju Air vs. Busan Ind |
| CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. SK Hynix | CJ Seafood vs. POSCO Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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