Correlation Between Jb Financial and Automobile
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Automobile 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 Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Automobile Pc, you can compare the effects of market volatilities on Jb Financial and Automobile 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 Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Automobile.
Diversification Opportunities for Jb Financial and Automobile
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 175330 and Automobile is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Automobile Pc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automobile Pc 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 Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automobile Pc has no effect on the direction of Jb Financial i.e., Jb Financial and Automobile go up and down completely randomly.
Pair Corralation between Jb Financial and Automobile
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.92 times more return on investment than Automobile. However, Jb Financial is 1.09 times less risky than Automobile. It trades about -0.01 of its potential returns per unit of risk. Automobile Pc is currently generating about -0.18 per unit of risk. If you would invest 1,968,000 in Jb Financial on October 30, 2024 and sell it today you would lose (31,000) from holding Jb Financial or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Automobile Pc
Performance |
| Timeline |
| Jb Financial |
| Automobile Pc |
Jb Financial and Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Automobile
The main advantage of trading using opposite Jb Financial and Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Automobile 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 Automobile will offset losses from the drop in Automobile'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 |
| Automobile vs. Hana Materials | Automobile vs. Hyosung Advanced Materials | Automobile vs. INNOX Advanced Materials | Automobile vs. Chorokbaem Healthcare 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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