Correlation Between Jb Financial and Asiana Airlines
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Asiana Airlines 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 Asiana Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Asiana Airlines, you can compare the effects of market volatilities on Jb Financial and Asiana Airlines 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 Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Asiana Airlines.
Diversification Opportunities for Jb Financial and Asiana Airlines
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 175330 and Asiana is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines 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 Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of Jb Financial i.e., Jb Financial and Asiana Airlines go up and down completely randomly.
Pair Corralation between Jb Financial and Asiana Airlines
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.21 times more return on investment than Asiana Airlines. However, Jb Financial is 1.21 times more volatile than Asiana Airlines. It trades about -0.01 of its potential returns per unit of risk. Asiana Airlines is currently generating about -0.02 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. Asiana Airlines
Performance |
| Timeline |
| Jb Financial |
| Asiana Airlines |
Jb Financial and Asiana Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Asiana Airlines
The main advantage of trading using opposite Jb Financial and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' 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 |
| Asiana Airlines vs. PJ Metal Co | Asiana Airlines vs. Seoyon Topmetal Co | Asiana Airlines vs. Daelim Trading Co | Asiana Airlines vs. E Investment Development |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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