Correlation Between Jb Financial and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Kukil Metal 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 Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Kukil Metal Co, you can compare the effects of market volatilities on Jb Financial and Kukil Metal 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 Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Kukil Metal.
Diversification Opportunities for Jb Financial and Kukil Metal
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between 175330 and Kukil is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal 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 Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Jb Financial i.e., Jb Financial and Kukil Metal go up and down completely randomly.
Pair Corralation between Jb Financial and Kukil Metal
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.49 times more return on investment than Kukil Metal. However, Jb Financial is 2.05 times less risky than Kukil Metal. It trades about 0.1 of its potential returns per unit of risk. Kukil Metal Co is currently generating about 0.0 per unit of risk. If you would invest 858,461 in Jb Financial on November 9, 2024 and sell it today you would earn a total of 1,101,539 from holding Jb Financial or generate 128.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Kukil Metal Co
Performance |
| Timeline |
| Jb Financial |
| Kukil Metal |
Jb Financial and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Kukil Metal
The main advantage of trading using opposite Jb Financial and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| Jb Financial vs. Vina Technology Co | Jb Financial vs. Lotte Chilsung Beverage | Jb Financial vs. Hyosung Advanced Materials | Jb Financial vs. National Plastic Co |
| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. PJ Metal Co | Kukil Metal vs. Samhyun Steel 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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