Correlation Between JC Chemical and LockLock
Can any of the company-specific risk be diversified away by investing in both JC Chemical and LockLock 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 LockLock 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 LockLock Co, you can compare the effects of market volatilities on JC Chemical and LockLock 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 LockLock. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Chemical and LockLock.
Diversification Opportunities for JC Chemical and LockLock
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between 137950 and LockLock is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding JC Chemical Co and LockLock Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LockLock 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 LockLock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LockLock has no effect on the direction of JC Chemical i.e., JC Chemical and LockLock go up and down completely randomly.
Pair Corralation between JC Chemical and LockLock
Assuming the 90 days trading horizon JC Chemical Co is expected to under-perform the LockLock. In addition to that, JC Chemical is 39.34 times more volatile than LockLock Co. It trades about -0.33 of its total potential returns per unit of risk. LockLock Co is currently generating about -0.07 per unit of volatility. If you would invest 867,000 in LockLock Co on September 13, 2024 and sell it today you would lose (1,000.00) from holding LockLock Co or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JC Chemical Co vs. LockLock Co
Performance |
| Timeline |
| JC Chemical |
| LockLock |
JC Chemical and LockLock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JC Chemical and LockLock
The main advantage of trading using opposite JC Chemical and LockLock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Chemical position performs unexpectedly, LockLock 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 LockLock will offset losses from the drop in LockLock's long position.| JC Chemical vs. LockLock Co | JC Chemical vs. Woori Financial Group | JC Chemical vs. Jb Financial | JC Chemical vs. Nh Investment And |
| LockLock vs. LG Chemicals | LockLock vs. POSCO Holdings | LockLock vs. Hanwha Solutions | LockLock vs. Lotte Chemical Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |