Correlation Between Jb Financial and Hyundai Engineering
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Hyundai Engineering 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 Jb Financial and Hyundai Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Hyundai Engineering Construction, you can compare the effects of market volatilities on Jb Financial and Hyundai Engineering 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 Jb Financial with a short position of Hyundai Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Hyundai Engineering.
Diversification Opportunities for Jb Financial and Hyundai Engineering
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 175330 and Hyundai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Hyundai Engineering Constructi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Engineering and Jb 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 Jb Financial are associated (or correlated) with Hyundai Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Engineering has no effect on the direction of Jb Financial i.e., Jb Financial and Hyundai Engineering go up and down completely randomly.
Pair Corralation between Jb Financial and Hyundai Engineering
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.13 times more return on investment than Hyundai Engineering. However, Jb Financial is 1.13 times more volatile than Hyundai Engineering Construction. It trades about 0.38 of its potential returns per unit of risk. Hyundai Engineering Construction is currently generating about 0.01 per unit of risk. If you would invest 1,669,000 in Jb Financial on October 24, 2024 and sell it today you would earn a total of 259,000 from holding Jb Financial or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Hyundai Engineering Constructi
Performance |
| Timeline |
| Jb Financial |
| Hyundai Engineering |
Jb Financial and Hyundai Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Hyundai Engineering
The main advantage of trading using opposite Jb Financial and Hyundai Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Hyundai Engineering 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 Hyundai Engineering will offset losses from the drop in Hyundai Engineering's long position.| Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Naver | Jb Financial vs. SK Hynix |
| Hyundai Engineering vs. Union Materials Corp | Hyundai Engineering vs. KT Submarine Telecom | Hyundai Engineering vs. Dongbang Transport Logistics | Hyundai Engineering vs. National Plastic 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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