Correlation Between Jb Financial and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Jb Financial and EBEST Investment 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 EBEST Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and EBEST Investment Securities, you can compare the effects of market volatilities on Jb Financial and EBEST Investment 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 EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and EBEST Investment.
Diversification Opportunities for Jb Financial and EBEST Investment
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 175330 and EBEST is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec 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 EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Jb Financial i.e., Jb Financial and EBEST Investment go up and down completely randomly.
Pair Corralation between Jb Financial and EBEST Investment
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.4 times more return on investment than EBEST Investment. However, Jb Financial is 1.4 times more volatile than EBEST Investment Securities. It trades about -0.01 of its potential returns per unit of risk. EBEST Investment Securities is currently generating about -0.29 per unit of risk. If you would invest 1,816,000 in Jb Financial on September 12, 2024 and sell it today you would lose (27,000) from holding Jb Financial or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. EBEST Investment Securities
Performance |
| Timeline |
| Jb Financial |
| EBEST Investment Sec |
Jb Financial and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and EBEST Investment
The main advantage of trading using opposite Jb Financial and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Jb Financial vs. Hansol Chemical Co | Jb Financial vs. Tae Kyung Chemical | Jb Financial vs. Genie Music | Jb Financial vs. Kukdo Chemical Co |
| EBEST Investment vs. KB Financial Group | EBEST Investment vs. Shinhan Financial Group | EBEST Investment vs. Hana Financial | EBEST Investment vs. Woori Financial Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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