Correlation Between CJ Cheiljedang and Lotte Non
Can any of the company-specific risk be diversified away by investing in both CJ Cheiljedang and Lotte Non 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 CJ Cheiljedang and Lotte Non into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CJ Cheiljedang and Lotte Non Life Insurance, you can compare the effects of market volatilities on CJ Cheiljedang and Lotte Non 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 CJ Cheiljedang with a short position of Lotte Non. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Cheiljedang and Lotte Non.
Diversification Opportunities for CJ Cheiljedang and Lotte Non
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between 097950 and Lotte is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding CJ Cheiljedang and Lotte Non Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Non Life and CJ Cheiljedang 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 CJ Cheiljedang are associated (or correlated) with Lotte Non. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Non Life has no effect on the direction of CJ Cheiljedang i.e., CJ Cheiljedang and Lotte Non go up and down completely randomly.
Pair Corralation between CJ Cheiljedang and Lotte Non
Assuming the 90 days trading horizon CJ Cheiljedang is expected to under-perform the Lotte Non. But the stock apears to be less risky and, when comparing its historical volatility, CJ Cheiljedang is 1.1 times less risky than Lotte Non. The stock trades about -0.37 of its potential returns per unit of risk. The Lotte Non Life Insurance is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 204,500 in Lotte Non Life Insurance on October 24, 2024 and sell it today you would lose (4,600) from holding Lotte Non Life Insurance or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Cheiljedang vs. Lotte Non Life Insurance
Performance |
| Timeline |
| CJ Cheiljedang |
| Lotte Non Life |
CJ Cheiljedang and Lotte Non Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Cheiljedang and Lotte Non
The main advantage of trading using opposite CJ Cheiljedang and Lotte Non positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Cheiljedang position performs unexpectedly, Lotte Non 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 Lotte Non will offset losses from the drop in Lotte Non's long position.| CJ Cheiljedang vs. Iljin Display | CJ Cheiljedang vs. Camus Engineering Construction | CJ Cheiljedang vs. Daesung Hi Tech Co | CJ Cheiljedang vs. BIT Computer Co |
| Lotte Non vs. Shinsegae Engineering Construction | Lotte Non vs. Hyundai Engineering Construction | Lotte Non vs. Woorim Machinery Co | Lotte Non vs. Tuksu Engineering ConstructionLtd |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |