Correlation Between Jb Financial and Samil CoLtd
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Samil CoLtd 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 Samil CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Samil CoLtd, you can compare the effects of market volatilities on Jb Financial and Samil CoLtd 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 Samil CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Samil CoLtd.
Diversification Opportunities for Jb Financial and Samil CoLtd
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 175330 and Samil is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Samil CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samil CoLtd 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 Samil CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samil CoLtd has no effect on the direction of Jb Financial i.e., Jb Financial and Samil CoLtd go up and down completely randomly.
Pair Corralation between Jb Financial and Samil CoLtd
Assuming the 90 days trading horizon Jb Financial is expected to generate 3.06 times less return on investment than Samil CoLtd. In addition to that, Jb Financial is 1.15 times more volatile than Samil CoLtd. It trades about 0.09 of its total potential returns per unit of risk. Samil CoLtd is currently generating about 0.32 per unit of volatility. If you would invest 147,800 in Samil CoLtd on August 27, 2024 and sell it today you would earn a total of 13,000 from holding Samil CoLtd or generate 8.8% 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. Samil CoLtd
Performance |
| Timeline |
| Jb Financial |
| Samil CoLtd |
Jb Financial and Samil CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Samil CoLtd
The main advantage of trading using opposite Jb Financial and Samil CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Samil CoLtd 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 Samil CoLtd will offset losses from the drop in Samil CoLtd's long position.| Jb Financial vs. Innowireless Co | Jb Financial vs. Homecast CoLtd | Jb Financial vs. Dongsin Engineering Construction | Jb Financial vs. Polaris Office Corp |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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