Correlation Between Jb Financial and HS Valve
Can any of the company-specific risk be diversified away by investing in both Jb Financial and HS Valve 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 HS Valve into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and HS Valve Co, you can compare the effects of market volatilities on Jb Financial and HS Valve 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 HS Valve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and HS Valve.
Diversification Opportunities for Jb Financial and HS Valve
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 175330 and 039610 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and HS Valve Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HS Valve 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 HS Valve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HS Valve has no effect on the direction of Jb Financial i.e., Jb Financial and HS Valve go up and down completely randomly.
Pair Corralation between Jb Financial and HS Valve
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.34 times more return on investment than HS Valve. However, Jb Financial is 2.91 times less risky than HS Valve. It trades about 0.15 of its potential returns per unit of risk. HS Valve Co is currently generating about 0.05 per unit of risk. If you would invest 1,378,399 in Jb Financial on September 3, 2024 and sell it today you would earn a total of 589,601 from holding Jb Financial or generate 42.77% 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. HS Valve Co
Performance |
| Timeline |
| Jb Financial |
| HS Valve |
Jb Financial and HS Valve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and HS Valve
The main advantage of trading using opposite Jb Financial and HS Valve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, HS Valve 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 HS Valve will offset losses from the drop in HS Valve's long position.| Jb Financial vs. Tway Air Co | Jb Financial vs. Youl Chon Chemical | Jb Financial vs. Jin Air Co | Jb Financial vs. Netmarble Games Corp |
| HS Valve vs. Rainbow Robotics | HS Valve vs. COWINTECH Co | HS Valve vs. CS BEARING CoLtd | HS Valve vs. Young Poong Precision |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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