Correlation Between Jb Financial and Namyang Dairy
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Namyang Dairy 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 Namyang Dairy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Namyang Dairy, you can compare the effects of market volatilities on Jb Financial and Namyang Dairy 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 Namyang Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Namyang Dairy.
Diversification Opportunities for Jb Financial and Namyang Dairy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between 175330 and Namyang is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Namyang Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namyang Dairy 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 Namyang Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namyang Dairy has no effect on the direction of Jb Financial i.e., Jb Financial and Namyang Dairy go up and down completely randomly.
Pair Corralation between Jb Financial and Namyang Dairy
Assuming the 90 days trading horizon Jb Financial is expected to generate 215.25 times less return on investment than Namyang Dairy. But when comparing it to its historical volatility, Jb Financial is 51.68 times less risky than Namyang Dairy. It trades about 0.03 of its potential returns per unit of risk. Namyang Dairy is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,770,000 in Namyang Dairy on October 14, 2024 and sell it today you would earn a total of 370,000 from holding Namyang Dairy or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Jb Financial vs. Namyang Dairy
Performance |
| Timeline |
| Jb Financial |
| Namyang Dairy |
Jb Financial and Namyang Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Namyang Dairy
The main advantage of trading using opposite Jb Financial and Namyang Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Namyang Dairy 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 Namyang Dairy will offset losses from the drop in Namyang Dairy's long position.| Jb Financial vs. Dongbu Insurance Co | Jb Financial vs. Anam Electronics Co | Jb Financial vs. Taegu Broadcasting | Jb Financial vs. Dongbang Transport Logistics |
| Namyang Dairy vs. Guyoung Technology Co | Namyang Dairy vs. Seers Technology | Namyang Dairy vs. NewFlex Technology Co | Namyang Dairy vs. ENF Technology 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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