Correlation Between Jb Financial and Hanwha InvestmentSecuri
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on Jb Financial and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Hanwha InvestmentSecuri.
Diversification Opportunities for Jb Financial and Hanwha InvestmentSecuri
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 175330 and Hanwha is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of Jb Financial i.e., Jb Financial and Hanwha InvestmentSecuri go up and down completely randomly.
Pair Corralation between Jb Financial and Hanwha InvestmentSecuri
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.42 times more return on investment than Hanwha InvestmentSecuri. However, Jb Financial is 2.38 times less risky than Hanwha InvestmentSecuri. It trades about 0.11 of its potential returns per unit of risk. Hanwha InvestmentSecurities Co is currently generating about 0.04 per unit of risk. If you would invest 690,999 in Jb Financial on August 29, 2024 and sell it today you would earn a total of 1,234,001 from holding Jb Financial or generate 178.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Hanwha InvestmentSecurities Co
Performance |
| Timeline |
| Jb Financial |
| Hanwha InvestmentSecuri |
Jb Financial and Hanwha InvestmentSecuri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Hanwha InvestmentSecuri
The main advantage of trading using opposite Jb Financial and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri's long position.| Jb Financial vs. Cube Entertainment | Jb Financial vs. Dreamus Company | Jb Financial vs. LG Energy Solution | Jb Financial vs. Dongwon System |
| Hanwha InvestmentSecuri vs. Nh Investment And | Hanwha InvestmentSecuri vs. DSC Investment | Hanwha InvestmentSecuri vs. Busan Industrial Co | Hanwha InvestmentSecuri vs. Busan Ind |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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