Correlation Between Jb Financial and Hansol Homedeco
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Hansol Homedeco 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 Hansol Homedeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Hansol Homedeco Co, you can compare the effects of market volatilities on Jb Financial and Hansol Homedeco 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 Hansol Homedeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Hansol Homedeco.
Diversification Opportunities for Jb Financial and Hansol Homedeco
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 175330 and Hansol is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Hansol Homedeco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Homedeco 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 Hansol Homedeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Homedeco has no effect on the direction of Jb Financial i.e., Jb Financial and Hansol Homedeco go up and down completely randomly.
Pair Corralation between Jb Financial and Hansol Homedeco
Assuming the 90 days trading horizon Jb Financial is expected to under-perform the Hansol Homedeco. But the stock apears to be less risky and, when comparing its historical volatility, Jb Financial is 2.53 times less risky than Hansol Homedeco. The stock trades about -0.24 of its potential returns per unit of risk. The Hansol Homedeco Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 100,600 in Hansol Homedeco Co on November 28, 2024 and sell it today you would lose (5,300) from holding Hansol Homedeco Co or give up 5.27% 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. Hansol Homedeco Co
Performance |
| Timeline |
| Jb Financial |
| Hansol Homedeco |
Jb Financial and Hansol Homedeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Hansol Homedeco
The main advantage of trading using opposite Jb Financial and Hansol Homedeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Hansol Homedeco 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 Hansol Homedeco will offset losses from the drop in Hansol Homedeco's long position.| Jb Financial vs. Hannong Chemicals | Jb Financial vs. Hanil Chemical Ind | Jb Financial vs. Hanyang Digitech Co | Jb Financial vs. Amogreentech Co |
| Hansol Homedeco vs. AptaBio Therapeutics | Hansol Homedeco vs. Daewoo SBI SPAC | Hansol Homedeco vs. Dream Security co | Hansol Homedeco vs. Microfriend |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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