Correlation Between MetaLabs and Jeju Bank
Can any of the company-specific risk be diversified away by investing in both MetaLabs and Jeju Bank 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 MetaLabs and Jeju Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetaLabs Co and Jeju Bank, you can compare the effects of market volatilities on MetaLabs and Jeju Bank 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 MetaLabs with a short position of Jeju Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetaLabs and Jeju Bank.
Diversification Opportunities for MetaLabs and Jeju Bank
Poor diversification
The 3 months correlation between MetaLabs and Jeju is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding MetaLabs Co and Jeju Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Bank and MetaLabs 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 MetaLabs Co are associated (or correlated) with Jeju Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Bank has no effect on the direction of MetaLabs i.e., MetaLabs and Jeju Bank go up and down completely randomly.
Pair Corralation between MetaLabs and Jeju Bank
Assuming the 90 days trading horizon MetaLabs Co is expected to under-perform the Jeju Bank. In addition to that, MetaLabs is 2.21 times more volatile than Jeju Bank. It trades about -0.24 of its total potential returns per unit of risk. Jeju Bank is currently generating about -0.04 per unit of volatility. If you would invest 824,000 in Jeju Bank on August 29, 2024 and sell it today you would lose (12,000) from holding Jeju Bank or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetaLabs Co vs. Jeju Bank
Performance |
| Timeline |
| MetaLabs |
| Jeju Bank |
MetaLabs and Jeju Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetaLabs and Jeju Bank
The main advantage of trading using opposite MetaLabs and Jeju Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetaLabs position performs unexpectedly, Jeju Bank 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 Bank will offset losses from the drop in Jeju Bank's long position.| MetaLabs vs. Samsung Card Co | MetaLabs vs. EBEST Investment Securities | MetaLabs vs. Koh Young Technology | MetaLabs vs. Hansol Chemica |
| Jeju Bank vs. AptaBio Therapeutics | Jeju Bank vs. Daewoo SBI SPAC | Jeju Bank vs. Dream Security co | Jeju Bank vs. Microfriend |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |