Correlation Between JC Chemical and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both JC Chemical and Sangsin Energy 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 Sangsin Energy 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 Sangsin Energy Display, you can compare the effects of market volatilities on JC Chemical and Sangsin Energy 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 Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Chemical and Sangsin Energy.
Diversification Opportunities for JC Chemical and Sangsin Energy
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 137950 and Sangsin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding JC Chemical Co and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display 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 Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of JC Chemical i.e., JC Chemical and Sangsin Energy go up and down completely randomly.
Pair Corralation between JC Chemical and Sangsin Energy
Assuming the 90 days trading horizon JC Chemical Co is expected to generate 0.76 times more return on investment than Sangsin Energy. However, JC Chemical Co is 1.32 times less risky than Sangsin Energy. It trades about -0.04 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.03 per unit of risk. If you would invest 671,902 in JC Chemical Co on October 16, 2024 and sell it today you would lose (283,402) from holding JC Chemical Co or give up 42.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JC Chemical Co vs. Sangsin Energy Display
Performance |
| Timeline |
| JC Chemical |
| Sangsin Energy Display |
JC Chemical and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JC Chemical and Sangsin Energy
The main advantage of trading using opposite JC Chemical and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Chemical position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| JC Chemical vs. A Tech Solution Co | JC Chemical vs. RFTech Co | JC Chemical vs. N2Tech Co | JC Chemical vs. SEOWONINTECHCoLtd |
| Sangsin Energy vs. Lotte Non Life Insurance | Sangsin Energy vs. TK Chemical | Sangsin Energy vs. JC Chemical Co | Sangsin Energy vs. Korea Petro Chemical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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