Correlation Between Jb Financial and Keyang Electric
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Keyang Electric 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 Keyang Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Keyang Electric Machinery, you can compare the effects of market volatilities on Jb Financial and Keyang Electric 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 Keyang Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Keyang Electric.
Diversification Opportunities for Jb Financial and Keyang Electric
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 175330 and Keyang is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Keyang Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyang Electric Machinery 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 Keyang Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyang Electric Machinery has no effect on the direction of Jb Financial i.e., Jb Financial and Keyang Electric go up and down completely randomly.
Pair Corralation between Jb Financial and Keyang Electric
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.01 times more return on investment than Keyang Electric. However, Jb Financial is 1.01 times more volatile than Keyang Electric Machinery. It trades about 0.15 of its potential returns per unit of risk. Keyang Electric Machinery is currently generating about -0.03 per unit of risk. If you would invest 966,032 in Jb Financial on September 4, 2024 and sell it today you would earn a total of 1,078,968 from holding Jb Financial or generate 111.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Keyang Electric Machinery
Performance |
| Timeline |
| Jb Financial |
| Keyang Electric Machinery |
Jb Financial and Keyang Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Keyang Electric
The main advantage of trading using opposite Jb Financial and Keyang Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Keyang Electric 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 Keyang Electric will offset losses from the drop in Keyang Electric's long position.| Jb Financial vs. Sung Bo Chemicals | Jb Financial vs. Daejung Chemicals Metals | Jb Financial vs. SM Entertainment Co | Jb Financial vs. LG Chemicals |
| Keyang Electric vs. Busan Industrial Co | Keyang Electric vs. UNISEM Co | Keyang Electric vs. RPBio Inc | Keyang Electric vs. Finebesteel |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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