Correlation Between JC Chemical and Semyung Electric
Can any of the company-specific risk be diversified away by investing in both JC Chemical and Semyung Electric 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 JC Chemical and Semyung Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JC Chemical Co and Semyung Electric Machinery, you can compare the effects of market volatilities on JC Chemical and Semyung Electric 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 JC Chemical with a short position of Semyung Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Chemical and Semyung Electric.
Diversification Opportunities for JC Chemical and Semyung Electric
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 137950 and Semyung is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding JC Chemical Co and Semyung Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semyung Electric Mac and JC Chemical 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 JC Chemical Co are associated (or correlated) with Semyung Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semyung Electric Mac has no effect on the direction of JC Chemical i.e., JC Chemical and Semyung Electric go up and down completely randomly.
Pair Corralation between JC Chemical and Semyung Electric
Assuming the 90 days trading horizon JC Chemical is expected to generate 2.12 times less return on investment than Semyung Electric. But when comparing it to its historical volatility, JC Chemical Co is 1.48 times less risky than Semyung Electric. It trades about 0.24 of its potential returns per unit of risk. Semyung Electric Machinery is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 442,689 in Semyung Electric Machinery on October 14, 2024 and sell it today you would earn a total of 77,311 from holding Semyung Electric Machinery or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JC Chemical Co vs. Semyung Electric Machinery
Performance |
| Timeline |
| JC Chemical |
| Semyung Electric Mac |
JC Chemical and Semyung Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JC Chemical and Semyung Electric
The main advantage of trading using opposite JC Chemical and Semyung Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Chemical position performs unexpectedly, Semyung Electric 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 Semyung Electric will offset losses from the drop in Semyung Electric's long position.| JC Chemical vs. Nam Hwa Construction | JC Chemical vs. Samick Musical Instruments | JC Chemical vs. KCC Engineering Construction | JC Chemical vs. Mobile Appliance |
| Semyung Electric vs. Samyang Foods Co | Semyung Electric vs. Sung Bo Chemicals | Semyung Electric vs. JC Chemical Co | Semyung Electric vs. Jeju Air 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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