Correlation Between Jb Financial and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Korea Shipbuilding 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 Korea Shipbuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Jb Financial and Korea Shipbuilding 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 Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Korea Shipbuilding.
Diversification Opportunities for Jb Financial and Korea Shipbuilding
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 175330 and Korea is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding 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 Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Jb Financial i.e., Jb Financial and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Jb Financial and Korea Shipbuilding
Assuming the 90 days trading horizon Jb Financial is expected to under-perform the Korea Shipbuilding. But the stock apears to be less risky and, when comparing its historical volatility, Jb Financial is 1.19 times less risky than Korea Shipbuilding. The stock trades about -0.01 of its potential returns per unit of risk. The Korea Shipbuilding Offshore is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 20,450,000 in Korea Shipbuilding Offshore on October 30, 2024 and sell it today you would earn a total of 2,400,000 from holding Korea Shipbuilding Offshore or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Jb Financial |
| Korea Shipbuilding |
Jb Financial and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Korea Shipbuilding
The main advantage of trading using opposite Jb Financial and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| Jb Financial vs. Dongbu Insurance Co | Jb Financial vs. Shinhan Financial Group | Jb Financial vs. Cloud Air CoLtd | Jb Financial vs. Dgb Financial |
| Korea Shipbuilding vs. DB Financial Investment | Korea Shipbuilding vs. Daol Investment Securities | Korea Shipbuilding vs. ABOV Semiconductor Co | Korea Shipbuilding vs. Mgame 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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