Correlation Between Jb Financial and Jeil Steel
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Jeil Steel 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 Jeil Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Jeil Steel Mfg, you can compare the effects of market volatilities on Jb Financial and Jeil Steel 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 Jeil Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Jeil Steel.
Diversification Opportunities for Jb Financial and Jeil Steel
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 175330 and Jeil is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Jeil Steel Mfg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeil Steel Mfg 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 Jeil Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeil Steel Mfg has no effect on the direction of Jb Financial i.e., Jb Financial and Jeil Steel go up and down completely randomly.
Pair Corralation between Jb Financial and Jeil Steel
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.13 times more return on investment than Jeil Steel. However, Jb Financial is 1.13 times more volatile than Jeil Steel Mfg. It trades about 0.69 of its potential returns per unit of risk. Jeil Steel Mfg is currently generating about -0.36 per unit of risk. If you would invest 1,580,000 in Jb Financial on November 3, 2024 and sell it today you would earn a total of 397,000 from holding Jb Financial or generate 25.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Jeil Steel Mfg
Performance |
| Timeline |
| Jb Financial |
| Jeil Steel Mfg |
Jb Financial and Jeil Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Jeil Steel
The main advantage of trading using opposite Jb Financial and Jeil Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Jeil Steel 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 Jeil Steel will offset losses from the drop in Jeil Steel's long position.| Jb Financial vs. Youngchang Chemical Co | Jb Financial vs. TK Chemical | Jb Financial vs. Clean Science co | Jb Financial vs. Foodnamoo |
| Jeil Steel vs. Samji Electronics Co | Jeil Steel vs. LEENO Industrial | Jeil Steel vs. Samyoung Electronics Co | Jeil Steel vs. Jahwa Electronics 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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