Correlation Between BNK Financial and Jeju Semiconductor
Can any of the company-specific risk be diversified away by investing in both BNK Financial and Jeju Semiconductor 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 BNK Financial and Jeju Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNK Financial Group and Jeju Semiconductor Corp, you can compare the effects of market volatilities on BNK Financial and Jeju Semiconductor 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 BNK Financial with a short position of Jeju Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and Jeju Semiconductor.
Diversification Opportunities for BNK Financial and Jeju Semiconductor
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNK and Jeju is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group and Jeju Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Semiconductor Corp and BNK Financial 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 BNK Financial Group are associated (or correlated) with Jeju Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Semiconductor Corp has no effect on the direction of BNK Financial i.e., BNK Financial and Jeju Semiconductor go up and down completely randomly.
Pair Corralation between BNK Financial and Jeju Semiconductor
Assuming the 90 days trading horizon BNK Financial Group is expected to generate 0.67 times more return on investment than Jeju Semiconductor. However, BNK Financial Group is 1.5 times less risky than Jeju Semiconductor. It trades about 0.43 of its potential returns per unit of risk. Jeju Semiconductor Corp is currently generating about -0.6 per unit of risk. If you would invest 940,000 in BNK Financial Group on September 4, 2024 and sell it today you would earn a total of 152,000 from holding BNK Financial Group or generate 16.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNK Financial Group vs. Jeju Semiconductor Corp
Performance |
| Timeline |
| BNK Financial Group |
| Jeju Semiconductor Corp |
BNK Financial and Jeju Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNK Financial and Jeju Semiconductor
The main advantage of trading using opposite BNK Financial and Jeju Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial position performs unexpectedly, Jeju Semiconductor 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 Jeju Semiconductor will offset losses from the drop in Jeju Semiconductor's long position.| BNK Financial vs. Dongjin Semichem Co | BNK Financial vs. AhnLab Inc | BNK Financial vs. Posco ICT | BNK Financial vs. CJ ENM |
| Jeju Semiconductor vs. Dongsin Engineering Construction | Jeju Semiconductor vs. Doosan Fuel Cell | Jeju Semiconductor vs. Daishin Balance 1 | Jeju Semiconductor vs. Total Soft Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |