Correlation Between JC Chemical and Hansol Homedeco
Can any of the company-specific risk be diversified away by investing in both JC Chemical and Hansol Homedeco 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 Hansol Homedeco 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 Hansol Homedeco Co, you can compare the effects of market volatilities on JC Chemical and Hansol Homedeco 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 Hansol Homedeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Chemical and Hansol Homedeco.
Diversification Opportunities for JC Chemical and Hansol Homedeco
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 137950 and Hansol is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JC Chemical Co and Hansol Homedeco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Homedeco 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 Hansol Homedeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Homedeco has no effect on the direction of JC Chemical i.e., JC Chemical and Hansol Homedeco go up and down completely randomly.
Pair Corralation between JC Chemical and Hansol Homedeco
Assuming the 90 days trading horizon JC Chemical is expected to generate 1.57 times less return on investment than Hansol Homedeco. But when comparing it to its historical volatility, JC Chemical Co is 1.43 times less risky than Hansol Homedeco. It trades about 0.28 of its potential returns per unit of risk. Hansol Homedeco Co is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 62,000 in Hansol Homedeco Co on October 12, 2024 and sell it today you would earn a total of 10,400 from holding Hansol Homedeco Co or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JC Chemical Co vs. Hansol Homedeco Co
Performance |
| Timeline |
| JC Chemical |
| Hansol Homedeco |
JC Chemical and Hansol Homedeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JC Chemical and Hansol Homedeco
The main advantage of trading using opposite JC Chemical and Hansol Homedeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Chemical position performs unexpectedly, Hansol Homedeco 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 Hansol Homedeco will offset losses from the drop in Hansol Homedeco's long position.| JC Chemical vs. RFTech Co | JC Chemical vs. Yura Tech Co | JC Chemical vs. Narae Nanotech Corp | JC Chemical vs. A Tech Solution Co |
| Hansol Homedeco vs. Dong A Steel Technology | Hansol Homedeco vs. JC Chemical Co | Hansol Homedeco vs. Vina Technology Co | Hansol Homedeco vs. Green Cross Medical |
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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